North Korean Economy Watch

According to the Los Angeles Times:

North Korea tried to export gas masks to Syria this spring, presumably for use in the Middle East nation’s chemical weapons program, but the shipment was intercepted by Turkey along with arms and ammunition, a Japanese newspaper reported Tuesday.

The Libya-flagged ship El Entisar (“Victory”) was stopped April 3 by Turkish authorities as it passed through the Dardanelles, the Sankei Shimbun reported. Acting on the tip from the United States, authorities searched the ship and seized 1,400 rifles and pistols and about 30,000 rounds of ammunition as well as the gas masks.

The captain of the vessel admitted that the shipment had come from North Korea, according to the newspaper, which said the plan was for the arms to be unloaded in Turkey and transported by land into Syria to support the government of President Bashar Assad.

The revelation comes amid international outrage over accusations that Syrian troops used chemical weapons against civilians suburbs of Damascus last week. Any connection between North Korea and the alleged attacks could further isolate North Korea.

…

This is not the first time that North Korea has been accused of supplying equipment related to chemical arms to Syria. In November 2009, Greece seized almost 14,000 suits that provide protection from such weapons on a North Korean ship they believed was headed to Syria. South Korean authorities also intercepted a North Korean shipment of protective gear on a vessel sailing near the South Korean port of Busan that year.

“There is a long-term relationship between North Korea and Syria, similar to the agreement with Iran, on nuclear and conventional weapons,” said Park Syung-je, a military expert at the Asia Strategy Institute in Seoul. “I don’t see any signs that it has diminished.”

A Syrian delegation was reported to have visited Pyongyang, North Korea’s capital, in late July. The Korean Central News Agency quoted North Korean leader Kim Jong Un saying the talks were aimed as “boasting bilateral relations” between their countries.

Read the full story here:
North Korea tried to ship gas masks to Syria, report says
Los Angeles Times
Barbara Demick
2013-8-27

According to Yonhap:

The only sign of activity at the North Korean trade promotion agency here in Beijing is the faintly lit banner in front, and it is hard to tell whether the office is open for business.

No one is seen at the reception desk of North Korea’s Investment and Development Group building, located in a northern Beijing suburb, and its front door, though appears to be open, remains stationary for most of a weekday.

“North Koreans are still working there,” said a Chinese cleaner near the building, who only gave his surname Wu.

The Beijing branch of North Korea’s Investment and Development Group was believed to have launched operations early last year, but it appears certain to be a dead duck as the North’s unpredictability continues to keep Chinese investors away.

Its website has not posted any statement since Jan. 23 this year, and there was no response to a phone call made on Aug. 16.

A South Korean diplomatic source in Beijing, who spoke on the condition of anonymity, said the North Korean branch has been dormant since the North’s defiant launch of a long-range rocket last December.

Tensions on the Korean Peninsula soared early this year, with North Korea conducting its third nuclear test and its near-daily war threats during an annual joint military drill between South Korea and the United States.

“We have figured out that operations at the Beijing office of the North’s Investment and Development Group almost ground to a halt,” the source said.

…

China, North Korea’s biggest trading partner and aid donor, has become increasingly frustrated with its wayward ally, particularly after the North’s February nuclear test. In May, the Bank of China closed accounts with North Korea’s Foreign Trade Bank, which was accused by the U.S. of helping to finance the North’s nuclear weapons program.

According to the South Korean Embassy in Beijing, North Korea’s trade volume with China fell 6 percent on-year in the first six months of this year.

The North’s trade with China stood at US$2.95 billion in the January-June period, compared with $3.14 billion a year earlier, embassy officials said.

Exports to China rose 6 percent to $1.36 billion, while imports declined 14 percent to $1.59 billion, they said, citing official data.

Read the full story here:
N. Korea appears to struggle to woo Chinese investors
Yonhap
2013-8-23

UPDATE 1 (2013-8-27): Chinese auto manufacturer announces plans for Rason plant. According to Yonhap:

A major Chinese automaker has expressed its intention to invest in a project to build a car manufacturing factory in North Korea, the North’s media said Tuesday.

FAW Group Corp., a Chinese state-owned automotive manufacturing firm, signed a letter of intent last week with North Korea’s Rason regional government to invest in the construction of the factory, the North’s Korean Central News Agency (KCNA) reported.

The agreement is a preliminary step to conclude an official deal for the investment.

The deal was made during the third round of the exhibition for international goods held in the North Korean city last week, according to the KCNA.

The impoverished communist country designated Rason, located on its northeastern tip, as a special economic zone and has been actively seeking an overseas investment in the region.

During the exhibition, China’s Heilongjiang regional committee on trade promotion and Rason’s economic committee signed an agreement to boost cooperation. Heilongjiang province is located in the northeastern part of China.

Stressing Chinese firms’ investment in the Rason region, an unidentified official from the Chinese body vowed “to transport goods from its region to Shanghai via Rason ports,” according to the report.

ORIGINAL POST (2013-8-21): According to KCNA:

3rd Rason Int’l Trade Exhibition under Way

Pyongyang, August 21 (KCNA) — The 3rd Rason International Trade Exhibition is going on in the Democratic People’s Republic of Korea.

The exhibition in the Rason Economic and Trade Zone bordering China and Russia is attended by more than 120 entities from countries and regions, including the DPRK, China, Russia, Germany, the U.S., and Japan.

On display at the exhibition are some 78 000 items of exhibits in 410 kinds, covering machinery, steel, electrical, electronic and chemical products, foodstuffs, medicines, building materials, vehicles and sundries.

In this regard, KCNA met Hwang Chol Nam, vice-chairman of the Rason City People’s Committee.

Hwang said:

The Rason City has laid definite institutional guarantee and legal foundations for jointly developing the economic and trade zone and has made a big stride in building infrastructure, paving a way for foreign businesses to smoothly carry on production and trade in the zone.

During the days of the exhibition, foreign businessmen will witness the situation of the developing zone.

Ho Myong Ho, director of the Rason Exhibition Corporation, told KCNA that the current exhibition is the biggest in scale and he believes that it will serve as an occasion for making the trade in the zone gain momentum.

The exhibition will run until August 23.

The Rason Economic and Trade Zone is a special economic zone in the DPRK, where preferential treatment is available.

The zone has developed into a hub for transit transport, trade and investment and financial and tourism service.

2013-8-20 evening news coverage of the opening ceremony can be seen here.

Dr. Bernhard Seliger posted the application form for the trade fair:

Previous posts on the Rason International Trade Fair can be found here.

From 2001 until 2013.

Here is the source.

According to Yonahp (via Global Post):

Eight out of 10 North Korean people are suffering from food shortages this year, with nearly 20 percent of children younger than five severely malnourished, a report by the U.N. food body has said.

According to the quarterly report the World Food Program (WFP) published on its assistance project for the communist country, 81 percent out of 115 households there were found to be in the category of “poor food consumption” or fall in the category between having adequate and poor food consumption in the second quarter of this year.

Of the surveyed, 76 percent coped with the crisis either by relying on support from others or eating cheaper food. Some 14 percent reduced their portions with 3 percent skipping meals, the report showed.

Thanks to Pyongyang’s increased food rations and the international organization’s aid, things have improved from a year earlier when 87 percent of the people surveyed suffered from shortages, according to the report.

The WFP’s earlier report showed that the North Korean government is providing more food rations to its people in 2013 than the previous year despite a drop in overseas aid. In the communist country, 66 percent of the total population, or about 16 million people, receive state food rations.

The agency, however, said the situation “remains fragile,” with the frequency of protein consumption “very low and unlikely meeting requirements.”

The WFP also said its visit to 120 pediatric hospitals found that 17 percent of the children under the age of five admitted to suffering from acute malnutrition.

Of the children admitted to hospitals, some 88 percent suffered from diarrhea, followed by 82 percent showing symptoms of respiratory infections and 49 percent indigestion, the report showed.

The WFP said it reached 1.46 million beneficiaries each month during the second quarter of the year, distributing a total of 10,489 metric tons of food. It also conducted 764 rounds of field visits to ensure its assistance arrived and was utilized properly.

According to Yonhap (via Global Post):

North Korea’s food procurement effort has been inadequate to cover the expected shortfall for this year, a media report based on data provided by an international agriculture agency said Friday.

The quarterly report by the Food and Agriculture Organization of the United Nations showed Pyongyang has been able to secure 290,600 tons of various grains from abroad from November 2012 through June of this year, the Voice of America (VOA) said.

The Washington-based media outlet said the total is equal to just 57 percent of the 507,000 tons the North needs to secure by October to prevent a food shortage for its people.

The latest findings come a day after the World Food Program (WFP) claimed eight out of 10 North Koreans are suffering from food shortages this year, with nearly 20 percent of children younger than five severely malnourished.

The percentage of people suffering food shortages, however, fell from 87 percent tallied the year before, the WFP said.

Despite the risk of shortage, the North has been able to increase its daily food rations for its people in the first seven months of this year to 397 grams per person, up 14 grams from the year before.

North Korea watchers also said that with Pyongyang placing emphasis on strengthening its agricultural sector, there have been some improvements in food conditions in the country compared to the past.

As per usual, the articles provided neither the titles of the reports nor links. Many UN reports on the DPRK can be found on my DPRK Economic Statistics Page.

The UN is appealing for funding for its DPRK relief programs. According to Yonhap:

The United Nations on Thursday appealed for US$98 million from the international community to help North Koreans in need, saying its humanitarian projects there are drastically underfunded.

Of the overall funding requirement of $150 million for 2013, $98 million is still urgently needed for food and agricultural support, health and nutrition, water and sanitation, according to the global body.

“While the overall humanitarian situation has improved slightly over the last 12 months, the structural causes of people’s vulnerability persist,” U.N. Resident Coordinator Ghulam Isaczai said in an emailed statement. “External assistance continues to play a vital role in safeguarding the lives of millions whose food security, nutritional status and essential health needs would otherwise be seriously compromised.”

Around 16 million people of the 24 million population are chronically short on food, his office said.

For cereal alone, the cereal for the 2012-13 marketing year is estimated at 507,000 metric tons, with serious gaps remaining between recommended and actual nutrient intake, widely due also to a lack of dietary diversity, it said.

“Without sustained humanitarian support, the gains made the past 10 years in improving food security and the overall health and nutrition of the most vulnerable — children, pregnant and nursing mothers, and the elderly — could be quickly reversed,” said Isaczai.

He urged U.N. member states to draw a line between political and humanitarian issues, as efforts to denuclearize North Korea have been stalled for years.

“We hope that donors will respond quickly and generously to allow U.N. agencies to address the humanitarian situation,” he said. “Separating humanitarian needs from political issues is a prerequisite for a sustainable improvement in the condition of people.”

Read the full stories here:
80 pct of N. Koreans suffer food shortages: WFP
Yonahp (via Global Post)
2013-8-8

N. Korea food procurement effort inadequate to cover shortfalls: report
Yonhap (via Global Post)
2013-8-9

Pictured Above: The Hoeryong Food Avenue (Google Earth)

According to Radio Free Asia:

A shuttered special food court established by former North Korean leader Kim Jong Il as a showcase for “high quality dishes at reasonable prices” has reopened and is being allowed to operate independent of the government in a rare move seen by some as reflecting economic reforms.

The center in Hoeryong city in North Hamgyong province bordering China was closed several months after its opening in November 2010 because the management faced financial problems as it could not meet production costs based on food sold to the public at prices dictated by the authorities, sources said.

North Hamgyong authorities recently allowed the Hoeryong Special Food Court to reopen and operate on an “autonomous” basis under new economic management methods introduced last year by Kim Jong Il’s son, Kim Jong Un, who took over after his father’s death in December 2011, the sources told RFA’s Korean Service.

“In order to meet the demands of the New Economic Management System, [the ruling] Workers Party provincial offices allowed the restaurant owners at Hoeryong Special Food Court to operate on an autonomous management basis,” one source in North Hamgyeong province said.

But some observers said the authorities had no choice but to allow the food center to set prices on its own to keep the operations alive, adding that any reform excuse was just an eyewash.

North Korea raced to build the food court after Kim Jong Il proposed it during a visit to his mother’s home town in 2009. He directed government funding of U.S. $800,000 for the project, which was completed in November 2010.

When he inspected the food court a month later, he ordered that it serve people with “high quality dishes at reasonable prices,” asking it to follow in the footsteps of another food outlet, Okryu Restaurant, in Pyongyang.

Operating cost

The source in North Hamgyong province said that the Hoeryong Special Food Court tried to adjust its prices to keep in tandem with those of Okryu Restaurant but could not cope with operating costs.

“During the initial months of operations, the North Korean authorities [subsidized prices] but soon after, the restaurants lost support from the government, thus it went out of business,” another source in the province said.

Even though the authorities did not provide support, they continued to regulate the food prices to make them 75 percent cheaper than those of regular restaurants,” the source said. “Therefore, the owners were suffering from financial difficulties.”

Some sources complain that under the new management of the Hoeryong Special Food Court, food prices have shot up rapidly. In addition, food that is not on the menu is served.

For instance, a seafood specialty restaurant serves steak while a steak house offers noodles, one source complained.

“Before at Hoeryong restaurant, cold noodles were 1,000 North Korean won (about 17 cents), and one bottle of Korean distilled spirits was 800 won (about 10 cents), but after the owners got authority to manage independently, the price of cold noodles went up to 4,000 won (about 68 cents) and one bottle of Korean distilled spirits up to 2,000 won (about 34 cents).

Read the full story here:
Special North Korean Food Court Allowed to Operate Independently
Radio Free Asia
Sung Hui Moon
2013-8-16

Here is a recent article in KCNA on economic advancements. I post as a reference to what the North Koreans are most proud of when it comes to economic management.

DPRK Directs Efforts to Developing Economy

Pyongyang, August 16 (KCNA) — Marshal Kim Jong Un, in the 2013 New Year Address, set the building of a strong economy as a key issue in accomplishing the cause of building a thriving socialist nation.

In response to his New Year Address, the people in the Democratic People’s Republic of Korea have made fresh upsurge in all economic sectors in the spirit of the “Masikryong Speed”.

Readjustment of the West Sea Barrage-Sinchon-Kangryong and Ongjin waterways was finished in ten days, while more than 1,000 hectares of fruit field has come into being in Pukchong County, South Hamgyong Province.

The Pyongyang Essential Foodstuff Factory and the Phyongsong Synthetic Leather Factory have become streamlined and the Vitamin C Factory and the Turf Research Center of the State Academy of Science were newly built on a modern basis.

Lots of industrial establishments across the country finished the first half-yearly assignments ahead of schedule.

The country’s science witnessed big achievements during the first half of the year.

The 10th national sci-tech presentation and show in the field of nano-technology and national sci-tech presentation in the field of mining industry took place, and an IT presentation was held on the occasion of the 50th anniversary of the Central Agency for Information of Science and Technology.

More than 140,000 hectares of land were afforested, 590 kilometers of roads repaired and 2,100 kilometers of riversides improved.

The Victorious Fatherland Liberation War Museum was newly built in a wonderful way on the occasion of the 60th anniversary of the Korean people’s victory in the Fatherland Liberation War (June 1950-July 1953).

The Rungna People’s Sports Park and Pyongyang International Football School were also built in Pyongyang.

A wave of innovations have been registered in building the Masik Pass Ski Resort, the reclamation project of the Sepho Tableland, the expansion project of the Kosan Fruit Farm and the construction of the second-stage Huichon Power Station.

The same is true with the construction sites of apartment houses for scientists, children’s hospital, dental hospital, Munsu Wading Pool and Mirim Riding Club.

All these projects are carried on as part of the efforts for implementing the plan of Kim Jong Un on turning the country into an economic giant.

UPDATE 9 (2013-8-16): ROK Red Cross to provide $100,000 flood relief to DPRK. According to Yonhap:

The Korean Red Cross plans to provide North Korea with an emergency fund of US$100,000 to help flood victims in the communist country, an official from the organization said Friday.

“The International Federation of Red Cross and Red Crescent Societies (IFRC) has asked for our participation in supporting the flood-hit North Korea,” the official said.

“In accordance, we’ve decided in humanitarian terms to send $100,000 to the IFRC to provide the victims there with relief goods.” he added.

The money, which comes from the Korean Red Cross’ own funds reserved for inter-Korean exchanges, is expected to be transferred to an IFRC bank account next week, according to the official.

The IFRC data showed that torrential rains since early July have caused extensive flooding and landslides across the impoverished communist country, killing 33 people and injuring 2 others with 18 still missing. An estimated 4,000 families have lost their homes and 50,000 have been displaced.

The international agency said earlier this month that it has allocated 299,744 Swiss franc to help the North Korean victims, with their relief operation to continue until the end of October.

Last year, the Korean Red Cross provided Pyongyang with $100,000 to help those who suffered from heavy precipitations.

UPDATE 8 (2013-8-6): The UN and South Koreans are contributing to flood relief. According to Yonhap:

The World Food Program (WFP) spokeswoman Nanna Skau said corn is being provided to households that have been hit hard by recent flooding caused by torrential rain, Radio Free Asia reported. She added that assistance is being offered because flooding has caused extensive damage to farmlands and irrigation systems.

The radio broadcast monitored in Seoul said distribution of the grain will continue for the next 30 days, with each recipient being allocated 400 grams per day.

The WFP also said support will be provided to 38,067 people in 10 cities and counties in Pyongan, Hwanghae and Hamgyong provinces.

The International Federation of Red Cross and Red Crescent Societies and the U.N. Office for the Coordination of Humanitarian Affairs said torrential rains that caused flooding and landslides left 33 North Koreans dead and displaced roughly 50,000 people from their homes. In places such as Anju in South Pyongan Province, some 80 percent of the city was flooded, resulting in extensive damage to homes and buildings.

Related to the international food effort underway, Korean Sharing Movement, a South Korean non-governmental organization, said it wanted to send emergency food aid to the North and requested permission from Seoul’s Ministry of Unification, which oversees inter-Korean affairs.

The civic groups pointed out that emergency aid shipments have always been permitted in the past regardless of the state of inter-Korean relations.

Cross-border ties have been strained following the North’s detonation of its third nuclear device in February and subsequent tightening of international sanctions. The shutting down of the joint factory park in Kaesong further strained relations.

Seoul has officially maintained that it will allow shipments of humanitarian aid to the North, but made clear it needs to first verify the extent of the flood damage. Officials have cited urgency and ability to make certain that relief will reach those in greatest need as conditions that must be met for aid to be provided. Last week, South Korea approved aid shipments by five local civic organizations.

Reflecting the country’s humanitarian aid policy, the South and North Exchange and Cooperation Promotion Council, which is chaired by the unification minister, approved sending more than US$6.03 million for relief programs organized by the U.N. Children’s Fund (UNICEF).

The money will be used to provide medicine and vaccines as well as improve the level of nutrition provided to small children, pregnant women and the socially disadvantaged. An additional 15.92 million won (US$14,288) will be sent to UNICEF to help manage the aid programs in North Korea.

UPDATE 7 (2013-8-2): From the United Nations:

Exceptionally heavy seasonal rain in mid-July resulted in flooding in many parts of DPRK Korea. Particularly severely affected are the provinces of North and South Pyongan. Many places had over twice the average rainfall for July in three days. There are a reported 33 deaths with 18 people still missing.

The Government has reported that there has been extensive damage to buildings and infrastructure with a current total of 48,688 people made homeless across the country, mostly in the two provinces of North and South Pyonang. Farmland was inundated with 11,567 hectares affected with around 1,125 hectares of farmland washed away or otherwise destroyed.

UN agencies carried out assessment missions on 24 July to two counties in North Pyongang – Pakchon and Taechon and in those two areas confirmed the scale of the flood damage. Further assessment missions will take place this week.

Damage to water systems is widespread and there is already an increased incidence of diarrhoea in some areas. Anju city, which was 80% flooded will only have its pumping stations fully operational again in about two weeks. 30 other communities have had their drinking water systems damaged.

Damage to agricultural land is extensive though estimates of crop damage vary and further assessment missions in the next week should give a more accurate number once the flood waters have fully receded. Apart from the farmland that was physically swept away or buried, damage to the standing crops may not be as extensive as first reports suggested as many fields were flooded by heavy rain rather than by flash flooding and, unless there is further heavy rain, seem likely to largely recover.

Transport infrastructure has suffered with at least 20 bridges and 11km of embankments and 143 areas where roads have been eroded, washed away or blocked by landslides. Government surveys show that 27 schools were completely destroyed in four provinces, with a further 10 being badly damaged. Many others have suffered more minor damage, though currently it is the summer break, so at present schooling is not being disrupted. Medical facilities such as hospitals, clinics and nursing homes also were affected with 3 being destroyed and 14 badly damaged.

UPDATE 6 (2013-8-4): The North Koreans have cut short military exercises to focus on flood relief. According to the AFP:

The communist state has staged summer military drills that partially coincided with the annual Ulchi Freedom Guardian exercise conducted by its rival South Korea and the United States, that usually takes place in August.

“But this year’s summer drill in the North will be scaled back considerably because it needs to focus on repairing floods damages,” the source was quoted as saying.

Floods caused by heavy rains that pummelled the North since early July have destroyed some 6,000 houses, displaced more than 23,000 people and washed away a large swathes of farmlands, the North’s state media said late last month.

The death toll has reached 33 across the nation and some 13,300 hectares of farmlands have been damaged, the International Federation of the Red Cross and Red Crescent Societies (IFRC) said last week, warning of “longer-term impact” on the country’s food security.

Decades of deforestation and decrepit infrastructure have left the impoverished North vulnerable to floods, which led to some 170 deaths last summer.

UPDATE 5 (2013-8-2): The international Red Cross has said it will provide North Korea with an emergency fund of US$320,000 to help flood victims. According to Yonhap:

The international Red Cross has said it will provide North Korea with an emergency fund of US$320,000 to help flood victims in the communist country.

In a report posted on its website Thursday, the International Federation of Red Cross and Red Crescent Societies (IFRC) said it has allocated 299,744 Swiss franc from its disaster relief emergency fund “to help the DPRK Red Cross Society in delivering immediate assistance to 5,000 families or 20,000 beneficiaries.”

DPRK stands for the Democratic People’s Republic of Korea, the North’s official name.

Torrential rains since early July have caused extensive flooding and landslides across the impoverished communist country, killing 33 people and injuring 2 others with 18 still missing, according to the IFRC data. An estimated 4,000 families have lost their homes and 50,000 have been displaced.

In response, the agency plans to spend $120,000 to set up a shelter for 5,000 families in the most affected areas of North and South Pyongan and North Hwanghae Provinces, another $100,000 for utensils, and $40,700 for water, sanitation and hygiene works.

“The operation targets to support affected families with essential items … It also supports the operational cost of the two water treatment units and hygiene promotion activities,” the IFRC said in the report.

The relief operation will continue over the next three months until the end of October, it added.

In the wake of the tragedy in the North, the IFRC dispatched an eight-member group of experts to the affected areas and has conducted damage assessment and led relief work.

The fund is a source of un-earmarked money created by the Federation in 1985 to ensure that immediate financial support is available for its emergency response, according to the agency’s website.

UPDATE 4 (2013-7-31): ROK NGOs start shipping humanitarian aid to DPRK. According to Yonhap:

South Korean non-governmental organizations (NGOs) started shipping out humanitarian aid to North Korea on Wednesday to help alleviate the plight of children and sick people in the impoverished country.

The move comes after Seoul’s unification ministry approved the shipment of goods earlier in the week as a sign that South Korea is open to offering urgent humanitarian assistance to the North in spite of sanctions on the North for its nuclear device detonation in February.

The Korea Association of People Sharing Love, one of five NGOs to gain permission to ship goods, said it has ordered the shipment of bread in China for delivery to child-care centers and orphanages in Sinuiju, a North Korean border city with China.

It said other shipments of food will be made in the coming weeks. The organization was allowed to send US$46,000 worth of bread, baby formulas and nutritional supplements.

Medical Aid for Children, another charity group, said it has held a ceremony in Incheon, west of Seoul, to mark the start of its deliveries of antibiotics and anti-inflammatory drugs.

The group said medical supplies worth 223 million won ($199,700) will be made to a children’s hospital in the North.

Other groups like Green Tree Korea, Okedongmu Children and Stop Hunger said the first of their aid shipments will reach the North next month.

These organization plan to send more than 1.2 billion won worth of warm clothing, blankets, flour, powdered milk to the North in the coming weeks.

The shipments mark the first time in four months that Seoul has approved humanitarian aid to the communist country. The last shipment included tuberculosis medicine sent by the Eugene Bell foundation.

Seoul has imposed a blanket ban on shipments of goods after accusing the North of sinking one of its naval vessels near the South-North sea demarcation line in March 2010.

UPDATE 3 (2013-7-28): South Korea offers flood assistance. According to the New York Times:

South Korea announced $7.3 million worth of humanitarian aid for North Korea on Sunday, a conciliatory gesture that coincided with a call by the South for “one last round” of talks on restarting a jointly operated industrial complex.

The majority of the aid — $6 million — will be provided by the South Korean government and shipped through Unicef, the United Nations children’s agency, which provides vaccines, medicine and nutritional supplements for malnourished children and pregnant women in the impoverished North. Five private humanitarian aid groups from South Korea will provide the remainder; they will also send medicine and food for young children.

The South Korean minister in charge of policy toward the North, Ryoo Kihl-jae, said the aid shipments were not linked to political issues. But the announcement was contained in a statement in which Mr. Ryoo also called for a final round of talks with the North to settle disputes over the Kaesong industrial complex, which has been closed since early April.

There was no immediate response from the North Korean government.

UPDATE 2 (2013-7-25): Christian Friends of Korea (CFK) to provide flood relief. According to Yonhap:

Christian Friends of Korea (CFK), which is already engaged in providing humanitarian assistance to people living in the Hwanghae region, will offer clean drinking water, food and medicine to flood victims, Radio Free Asia reported.

…

The United Nations said that as of Monday, 24 people have been killed because of flooding while many others have been injured. It said a fact-finding mission has been sent to the isolationist country to assess the full extent of the damage so assistance can be provided.

UPDATE 1 (2013-7-23): According to KCNA (2013-7-23):

Flood Damage Grows in DPRK

Pyongyang, July 23 (KCNA) — Flood damage by consecutive downpour and heavy rainfalls is growing in the Democratic People’s Republic of Korea.

According to a survey made between 18:00 July 20 and 18:00 July 22, the flooding left eight people dead throughout the country.

More than 4,500 houses were destroyed or submerged, leaving 17,700 people homeless.

At least 1,000 houses were damaged totally or partially in North Phyongan Province, with 2,300 houses submerged in Unsan County alone.

6,550 hectares of cropland were damaged in North and South Phyongan provinces.

Meanwhile, the torrential rain has brought damage to some 30 school and 15 hospital buildings throughout the country as of July 23, after the start of the rainy season.

ORIGINAL POST (2013-7-23): According to the Daily NK:

The city of Anju in South Pyongan Province, which suffered substantive flood damage in the summer of 2012, has again been hit hard by the rainy season. Francis Markus of the International Federation of the Red Cross (IFRC) released the news via Twitter on the 22nd, asserting that 80% of the city is now under water.

Markus tweeted, “10,000+ ppl displaced, need shelter & clean water in Anju city, w. #DPRK as river bursts banks #RedCross deploys water units,” later adding, “80% of Anju City, #DPRK reported under 2 m of water. #RedCross sending tarps, jerry cans, water purif tabs, hygiene kits etc 4 survivors.”

The city, which lies northwest of Pyongsung, has a population of more than 200,000.

Meanwhile, according to a North Korean meteorological statistics released by Chosun Central News Agency (KCNA) yesterday, close to double the average amount of July rainfall has fallen during the 20 days since the start of the rainy season.

“On July 20, the highest precipitation was recorded in Tongsin, Songwon, Ryongrim and Thaechon counties,” the article noted, going on, “From 21:00 July 19th to 15:00 July 21st, 413mm rainfall was recorded in Tongsin County, 383mm in Songwon County, 380mm in Thaechon County, 322mm in Huichon City, 312mm in Hyangsan County, 304mm in Tongchang County and over 200mm in Kusong City, Sonchon and Nyongbyon counties and Tokchon City.”

On the 19th, IFRC announced that it has dispatched an on-site inspection team to assess conditions on the ground in North Korea. An international relief effort in August 2012 saw the Red Cross deliver water and other essential goods to the people of the flood-damaged city.

Read the full story here:
Pyongan Suffering in Heavy Rains
Daily NK
Kim Tae Hong
2013-7-23

Institute for Far Eastern Studies (IFES)
2013-8-16

North Korea began to develop the wasteland in Gangwon Province from the late 2012 into a large-scale livestock-breeding base and is reported to be at the final stage of construction.

North Korean Workers’ Party newspaper Rodong Sinmun reported on August 2, “Soldier-builders and shock brigaders are busy building the Sepho tableland in time to celebrate the 65th anniversary of the establishment of the Republic.”

North Korea will celebrate the 65th anniversary of birth of its regime on September 9, and there are speculations that the flat wastelands of Sepho, Pyonggang and Ichon districts will be transformed into pastures in time for the anniversary.

Meanwhile, young people in the North, including soldiers and personnel in various agencies drafted the ‘shock brigade’ organizations, as they were brought into the construction project to meet the deadline of completion by early next month.

So far, about 20,000 ㏊ of natural grassland is being developed into artificial grassland over a period of six months and is about 96 percent complete, reported the Rodong Sinmun.

Furthermore, to prepare for the seasonal torrential rain in the region, approximately 230 ㎞of drainage system was constructed, and 50,000 tonnes of fertilizer made out of manure and compost was produced, to prepare for the autumn sowing.

Rodong Sinmun, reported on July 3, “As of the end of June, more than 10,000 jongbo (roughly about 9,917 ha) of natural land were cleaned up,” which reveals that in just over a month, land converted to pastureland had doubled in size.

At the North Korean Workers’ Party Central Committee Politburo meeting in February,a decision was reached that “the battle to open the Sepho Tableland and development of grassland must be completed by this year, in time to commemorate the 60th anniversary of the Armistice Agreement and 65th anniversary of establishment of the North Korean government.”

Kim Jong Un has directly ordered the development of Sepho Tableland to improve the lives of the North Korean people. Kim Jong Un has entered his second year in power and it is critical that the projects that he embarked on produce good results.

As an accomplishment of his first year, the construction of Huichon Power Station, Pyongyang Folk Park and Changjon Street in Pyongyang could be named, although these projects were originally launched by his father, Kim Jong Il.

Kim Yong Nam, the 85-year-old chairman of the Presidium of the Supreme People’s Assembly has visited the construction site of Sepho Tableland and encouraged workers on the site. DPRK Premier Pak Pong Ju and the KPA vice-marshal Choe Ryong Hae are also reported to have visited the site, signifying the great importance of Sepho for the North Korean regime.

According to Yonhap:

North Korea’s trade with China fell 6 percent on-year in the first six months of this year, apparently hit by Beijing’s tougher stance against Pyongyang’s nuclear program, a senior Seoul diplomat said Monday.

The North’s trade with China stood at US$2.95 billion in the January-June period, compared with $3.14 billion a year earlier, said the diplomat at the South Korean Embassy in Beijing.

Exports to China rose 6 percent to $1.36 billion, while imports declined 14 percent to $1.59 billion, the diplomat said on the condition of anonymity, citing official data.

“The drop in overall North Korea-China trade in the first six months of this year appears to be affected by tighter inspections by Chinese customs authorities,” the diplomat said.

North Korea’s imports of Chinese crude oil slipped 15 percent from a year ago to 250,000 tons during the six-month period, according to the data.

In particular, the North’s imports of food from China plunged 65 percent to 120,000 tons for the January-June period, the data showed.

Coal shipments from North Korea to China rose 18 percent to 8.33 million tons for the six-month period, despite falling coal prices, according to the data. Coal accounted for 54.8 percent of the North’s total exports to China during the period.

“With the Chinese economy expected to slow down in the second half of this year, China’s demand for North Korean coal is likely to decline,” the diplomat said.

China has become increasingly frustrated with North Korea, particularly after the North’s third nuclear test in February. Beijing voted in favor of sanctions by the U.N. Security Council to punish Pyongyang for conducting the nuclear test.

In May, the Bank of China closed accounts with North Korea’s Foreign Trade Bank, which was accused by the U.S. of helping finance the North’s nuclear weapons program.

Read the full story here:
N. Korea’s trade with China drops 6 pct in H1: diplomat
Yonahp
2013-8-12