Category Archive: Economy

Jul 18

Associated Press pulls photoshopped image from KCNA of DPRK flooding.

The above photo, acquired by Martyn Williams of North Korea Tech (I seem to be linking him a lot, lately!) appears to show North Koreans struggling with dangerously high flood levels as a result of a battering on rain storms. Associated Press had hosted the image for others to buy rights to for news publications, but later yanked the image with the following reason:

EDITORS AND LIBRARIANS PLEASE ELIMINATE FROM YOUR PHOTO SYSTEMS AND ARCHIVES AP PHOTO TOK801 TRANSMITTED JULY 16, 2011. THE CONTENT OF THIS IMAGE HAS BEEN DIGITALLY ALTERED AND DOES NOT ACCURATELY REFLECT THE SCENE. NO OTHER VERSION OF THE PHOTO IS AVAILABLE.

A full sized version of the image was at one point available (for a price), but is no longer available now. From the smaller version above, the image does appear off – peoples legs cast vague shadows though the tree trunks to the left are clear and dark. These people are trudging through thigh-high water but their pants appear completely dry above the waterline.

North Korea’s state-run news outlet KCNA provided the image, as part of its new licensing deals with Associated Press and Reuters. As many had predicated already, this new relationship seems to accomplish little else other than spread Pyongyang’s propaganda to a much larger audience. In this case, the potential for making weather conditions seem more severe than reality might help encourage support for emergency food and rescue aid.

Source: North Korea Tech / Yonhap

Permanent link to this article: http://www.openingupnorthkorea.com/archives/881

Jul 15

The 2018 Winter Olympics in Pyeongchang, SK, and how inter-Korean relations are affected.

God forbid...

PyeongChang, South Korea was recently awarded the Winter Olympics in a landslide vote from the International Olympic Committee. As has happened in the past for the 1988 Summer Olympics in Seoul, the suggestion has been made from both sides (that is, the left-wing opposition in the South and the desperate for foreign currency North) that some events and teams be shared jointly to represent a Korean peninsula “striving” for peaceful reunification. The Lee Myung-Bak South Korean government is playing it off with no serious consideration. From The Korea Times:

South and North Korea must resolve pending safety issues before discussing the potential of co-hosting the 2018 Winter Olympics to be held in PyeongChang, a government official said Wednesday.
Seoul has said it is open to related discussions but not actively looking into the matter. Any such move would need the approval of the International Olympic Committee, which observers say is highly unlikely.
"It’s possible as an idea,"Unification Ministry spokeswoman Lee Jong-joo told reporters. "But for co-hosting to be possible, security issues of people going to North Korea needs to be solved. We’re not considering or examining anything seriously at the moment."
She stressed, however, the importance of talks over a stalled joint tourism project in Mt. Geumgang in the North, which discontinued after the 2008 shooting death of a South Korean visitor.
The remarks followed a statement by Jang Ung, a North Korean member of the International Olympic Committee, who told reporters in Tokyo that the North hopes to share events with PyeongChang. The host city is located in Gangwon Provice, which straddles both South and North Korea.
It was the first reaction from a North Korean official after PyeongChang beat out Munich of Germany and Annecy of France last week to win the rights to host the 2018 Winter Games.
The successful bid set off a flurry of activity among lawmakers, with ruling and opposition parties agreeing to make efforts to field a unified Korean team and jointly train athletes. Rep. Sohn Hak-kyu, chairman of the opposition Democratic Party, said Monday he would explore ways to co-host the event.
Bahng Tae-seop, a North Korea watcher at the Samsung Economic Research Institute, said the stepped up security at that time would force the North to make an important decision regarding the Games.
"The South Korean military, as well as the U.S. military, will need to prepare against threats such as terrorism given the international scope of the event,"he said.
"That will be seen as a threat against the regime. It will be a matter of rational choice — accepting any chance to co-host, remain silent or, in the worst case, resort to more bad behavior."

Joshua Stanton, of One Free Korea, has a cynical analysis held by most Pyongyang observers (not excluding myself). He believes the South Korean posturing is simply to please the left-wing opposition party, who strive for peace and unity with their Northern kinsmen. The North apparently support this idea as well, however in the 1988 Olympics their excessive demands for co-hosting events and opening ceremonies met in a complete breakdown in negotiations resulting in a boycott by several other socialist countries. And according to a Gallup poll, nearly 3/4s of South Koreans agree that the DPRK should certainly not be involved.

Source: The Korea Times / One Free Korea

Permanent link to this article: http://www.openingupnorthkorea.com/archives/880

Jul 15

Mt. Kumgang resort negotiations break down as North refuses to deal with SK government.

In July 2008, a 53 year old South Korean woman, on one of Hyundai Asan’s tours in the Mt. Kumgang resort jointly run by North and South Korea, was shot dead by North Korean soldiers for allegedly wandering too close to a military installation. South Korea demanded a full investigation which was vehemently denied by the North, and since then the resort has been left in a state of limbo. Three years to the date, discussions between the rival nations continue to break down as the North refuses to concede to the South’s demands for an investigation, apology, and guarantee of safety for tourists. Minor and temporary agreements have been made during this time, such as utilizing the resort’s facilities for Red Cross reunions of families separated by the 1950-53 Korean War. More recently, the North has resumed tours without the South, and has seized many of the facilities and assets that received heavy investment from Hyundai Asan. From Reuters:

North Korea refused on Thursday to back down on its threat to strip a South Korean company of its assets to run tours to a joint resort as talks broke down over a three-year row amid security tensions between the rivals.
The dispute over the Mount Kumgang resort on the isolated North’s east coast is the latest of a list of issues underscoring the depth of soured relations on the peninsula that involved the sinking of a South Korean navy ship last year and bombing of a populated island by the North.
A team headed by South Korean Unification Ministry officials crossed the military border into the mountain resort to try to stop Pyongyang from seizing the assets of a South Korean tour operator at the resort.
North Korea gave a new deadline of July 29 for the South Korean tour operator Hyundai Asan to pull out or have their assets seized and disposed of, South Korea’s Unification Ministry said after the meeting ended in a deadlock.
Last month the North said it had revised a law overseeing the joint tourism project, effectively ending Hyundai Asan’s contract to exclusively run all cross-border tours to the resort.

Earlier this month, the North gave investors from the South until July 13 to come to the resort to sort out their assets or risk Pyongyang taking steps to seize and dispose of them.
An expert on the North, Stephan Haggard of the University of California, said the North has pushed its threat on Kumgang too far and the South is unlikely to separate it from the rest of the rivals’ bitter ties. "I think it will be very difficult for the government to sanction or reopen it," he said.

According to The Chosun Ilbo, Hyundai Asan has taken heavy losses amounting to nearly $400 million USD over the past 3 years.

Source: Reuters / The Chosun Ilbo

Permanent link to this article: http://www.openingupnorthkorea.com/archives/877

Jul 15

In the heels of AP enhancing relations with KCNA, now Reuters has upgraded agreement.

Hot on the heels of the announcement that the Associated Press is expanding its facilities in Pyongyang, Reuters has now also announced that it will be setting up a satellite dish for video and text distribution overseas. From the Reuters press release:

The new agreement will provide Reuters access to news video from North Korea via satellite for timely distribution to broadcasters and publishers around the world. The Reuters News Agency will be the first international news organization to have a full time satellite dish in North Korea, delivering clean news video content in addition to the text and pictures covered by a previous agreement – a significant benefit to broadcasters across the globe. 

“We know the world’s broadcasters are seeking more news from North Korea, and this agreement will ensure our clients have a regular supply of up to the minute video stories from Pyongyang and across the country,” said Chris Ahearn, president of Reuters Media.

The agreement with KCNA covers both breaking and feature news video, and marks a significant expansion by Reuters in delivering news from one of the world’s most important datelines. As part of the arrangement Reuters will also be providing editorial training and KCNA will facilitate regular visits to North Korea by senior Reuters journalists. 

North Korea Tech blogger Martyn Williams notes that Reuters has already been broadcasting video from the state-run KCNA since July 7th of this year. While some may get excited at the prospect of North Korea opening up its news coverage to a larger international audience, and allowing foreign journalists to operate within Pyongyang, from the North’s perspective it is probably a great way to generate foreign currency and get its propaganda to the outside world. In the past year, Pyongyang has also launched a new media campaign involving Twitter, Youtube and several attempts at a Facebook page.

Source: Reuters / North Korea Tech

Permanent link to this article: http://www.openingupnorthkorea.com/archives/876

Jul 08

Washington Post reports Pakistani-DPRK clandestine nuclear tech trade.

The Washington Post has an exclusive look at a letter from Jon Byong-Ho, the ranking NK official on weapons importing/exporting (till he was replaced due to old age this past April). The letter is addressed to A.Q. Khan, the infamous man behind Pakistan’s nuclear weapons programme who is alleged to have provided nuke technology to North Korea, Libya, Iran and Iraq. The subject in general is a trade-off or bribe of money and jewels in exchange for nuclear technology, while also alluding to an assassination attempt on the North Korean liaison by the ISI, Pakistan’s intelligence agency. A transcription of the letter in question:

SECRET                                                BY HAND

Dr. A.Q.Khan                                          Ref No. 1998/01
    Project Director                                  Date; July 15, 1998
	K.R.L.
	
Excellency,

I am hoping you and your family are fine.

Gen. Kang Tae Yun came back with the body of his wife. I am thanking 
you for all your support to him. How kind of you to send Mr. Badrul and 
Mr. Farooq and arrange the Airforce Boeing plane. I am certain that Gen. 
Kang was the target and I have no doubt that the CIA, South Korean 
intelligence agents and your ISI were involved. I have come to hear that the 
murderer was set free by the ISI after just a short time. Since Gen. Kang's 
life is in danger I am sending Mr. Yon in his place. Mr. Yon has served in 
Iran, Egypt, Syria and Libya and is very competent.

Gen. Kang told me that the 3 millions dollars have already been paid to 
Army Chief Gen. J. Karamat and half a million dollars and 3 diamond and 
ruby sets have been given to Gen. Zulfiqar Khan. Please give the agreed 
documents, components etc. to Mr. Yon to be flown back when our plane 
returns after delivery of missile components. 

Excellency, please be accepting our heartiest felicitations on the recent 
success of your nuclear tests. It was only possible because of your hard 
work and team effort.

Excellency, I am wishing you good health, long life and success in your 
important work.

Yours sincerely,

                              Jon ByongHo
                              Secretary of the Workers Party of Korea,
                              D.P.R. of Korea

3.5 million dollars and a few fistfuls of gems for the nuclear technology the DPRK threatens other nations with regularly seems a pretty good deal for the military-focused Kim Jong-Il regime. It certainly exemplifies their priorities just past the peak of the North Korean famine of the 90s. All of the named Pakistani officials in the letter have vehemently denied that any bribes for technology were accepted (what else would they say?) but the US has stated that it seems pretty consistent with what they know. From The Washington Post:

Jehangir Karamat, a former Pakistani military chief named as the recipient of the $3 million payment, said the letter is untrue. In an e-mail from Lahore, Karamat said that Khan, as part of his defense against allegations of personal responsibility for illicit nuclear proliferation, had tried “to shift blame on others.” Karamat said the letter’s allegations were “malicious with no truth in them whatsoever.”

The other official named in the letter, retired Lt. Gen. Zulfiqar Khan, called it “a fabrication.”

The Pakistani Embassy in Washington declined to comment officially. But a senior Pakistani official, who spoke on the condition of anonymity “to avoid offending” Khan’s supporters, said the letter “is clearly a fabrication. It is not on any official letterhead and bears no seal. . . . The reference to alleged payment and gifts to senior Pakistani military officers is ludicrous.”

There is, however, a Pakistani-Western divide on the letter, which was provided to The Post by former British journalist Simon Henderson, who The Post verified had obtained it from Khan. A U.S. intelligence official who tracks nuclear proliferation issues said it contains accurate details of sensitive matters known only to a handful of people in Pakistan, North Korea and the United States.

A senior U.S. official said separately that government experts concluded after examining a copy of the letter that the signature appears authentic and that the substance is “consistent with our knowledge” now of the same events. Both officials spoke on the condition of anonymity because of the diplomatic sensitivity of the allegation.

Olli Heinonen, a 27-year vet­eran of the International Atomic Energy Agency who led its investigation of Khan before moving to Harvard’s Kennedy School last year, said the letter is similar to other North Korean notes that he had seen or received. They typically lacked a letterhead, he said; moreover, he said he has previously heard similar accounts — originating from senior Pakistanis — of clandestine payments by North Korea to Pakistani military officials and government advisers.

The substance of the letter, Heinonen said, “makes a lot of sense,” given what is now known about the North Korean program.

 

Source: Washington Post / Arms Control Wonk

Permanent link to this article: http://www.openingupnorthkorea.com/archives/863

Jun 29

Associated Press bureau expansion being planned for Pyongyang.

Back in March, Thomas Curley, the CEO of Associated Press news agency made a private trip to Pyongyang, presumably to secure permission to place a bureau in the capital city. Last month, a delegation led by state-run news outlet KCNA president Kim Pyong-Ho travelled to New York for a followup meeting. It appears the two news agencies have agreed to expand the very basic services currently in place since 2006. From the horse’s mouth:

The Associated Press and the North Korean state news agency have signed a series of agreements, including one for the opening of a comprehensive AP news bureau in Pyongyang, the organizations announced Wednesday.

A memorandum of understanding agreed by the AP and the Korean Central News Agency would expand the AP’s presence in North Korea to a level unmatched by any other Western news organization. It would build upon the AP’s existing video news bureau, which opened in Pyongyang in 2006, by allowing AP text and photo journalists to work in North Korea as well.

With the signing, the agencies agreed to begin work immediately on detailed planning needed to set up and operate the new bureau as quickly as possible. It would be the first permanent text and photo bureau operated by a Western news organization in the North Korean capital.

In addition, the agencies signed a contract designating the AP as the exclusive international distributor of contemporary and historic video from KCNA’s archive. The agencies also plan a joint photo exhibition in New York next year. They already had an agreement between them to distribute KCNA photo archives to the global market, signed earlier this year.

"This agreement between AP and KCNA is historic and significant," AP President and CEO Tom Curley said. "AP is once again being trusted to open a door to better understanding between a nation and the world. We are grateful for this opportunity and look forward to providing coverage for AP’s global audience in our usually reliable and insightful way."

Kim Pyong Ho, president of KCNA, said after a signing ceremony late Tuesday: "I hope this agreement contributes not only to the strengthening of relations between our two news agencies but also to the better understanding between the peoples of our two countries and the improvement of the DPRK-U.S. relations." DPRK stands for the Democratic People’s Republic of Korea, the formal name of the state.

The AP in recent years has been talking with North Korean officials on various topics including how to set up broader access for AP print and photo journalists to Pyongyang. As the contacts progressed, KCNA hosted Curley in Pyongyang in March.

AP Seoul Bureau Chief Jean H. Lee and Chief Asia Photographer David Guttenfelder have made several extensive reporting trips to North Korea in the past several months as part of unprecedented coverage of the country and its people.

What will this mean for journalism in North Korea? In the short term, probably nothing. In the long term (this is the cynic in me speaking)… probably nothing. But it is a notable step, and one we will surely be keeping an eye on.

Source: Associated Press via @egalite_twitted

Permanent link to this article: http://www.openingupnorthkorea.com/archives/851

Jun 29

North Korea–a (brief) month in review. Regular updates to resume!

How quickly times gets away from you.. the labourious process of buying, packing up and getting ready to move into a new house has consumed much of my free time that might otherwise be spent maintaining this website. But I digress… here’s a small selection of what’s been going on over the past few weeks.


Pyongyang undergoing massive renovations in time for 2012, university students put to work until April 2012

2012 is an important year for North Korea for many reasons. Mainly, it is to celebrate the 100th birthday of the DPRK’s perpetual despot Kim Il-Sung, which could very well be the biggest birthday bash the Great Leader has ever had thrown on his behalf. There is also a great burden on grandson Kim Jong-Un, who is allegedly involved in many of the preparations and tasked to help forge the "strong and prosperous nation" by 2012. One massive undertaking is the renovation of the famous Mansudae area of Pyongyang, home to the giant bronze statue of Kim Il-Sung and numerous landmarks. Huffington Post has a summary:

"The central part of Pyongyang will be refurbished according to the requirements of this new century and the demand of modern times by 2012," Yun Sok Chon, head of the Institute of Pyongyang City Design, told APTN.

The building project in Pyongyang’s Mansudae area will include a new theater, apartment blocks, restaurants, shops and a 10-hectare (25-acre) park area, the Korean Central News Agency reported earlier this month. KCNA said the project "will change the appearance of the capital city beyond recognition."

In the past two years, three other high-profile apartment projects have been completed in Pyongyang.

Authorities have not made public the cost of the Mansudae project, exact statistics of its scale or the resources involved. But it is part of the biggest construction work in Pyongyang since the development of a new town area called Tongil Street in the 1990s.

Ambitious project. Given a constant shortfall of construction supplies, at least they seemed to have solved a labour shortage. UK news outlet The Telegraph reports that students are being conscripted to work construction sites in major cities and deal with agricultural problems as well:

Pyongyang has told the North Korean people that the nation will have achieved its aim of becoming "a great, prosperous and powerful nation" in 2012, which marks the 100th anniversary of the founder of the reclusive state, Kim Il-sung.
In addition, Kim Jong-il will turn 70 in February and the "Dear Leader" hopes to be able to transfer his power and an economically stronger nation to his son and heir-apparent, Kim Jong-Un.
Reports in South Korea indicated that the government in Pyongyang on Monday ordered all universities to cancel classes until April of next year. The only exemptions are for students who will be graduating in the next few months and foreign students.
The reports suggested that the students will be put to work on construction projects in major cities while there are also indications that repair work may be needed in agricultural regions that were affected by a major typhoon recently.
Analysts in Japan claim there may be other reasons behind the decision to disperse the students across the country.
"One reason is that there is a possibility of demonstrations at university campuses," said Toshimitsu Shigemura, a professor at Tokyo’s Waseda University and author of a number of books on the North Korean leadership.
"The leadership has seen the ‘Jasmine Revolution’ in Africa and it is very frightened that the same thing could happen in North Korea," he said. "They fear it could start in the universities."
Professor Shigemura also said that North Korea has purchased anti-riot equipment from China in recent months, including tear gas and batons, while there has been an increased police presence at key points in Pyongyang in recent months.

China has since denied supplying North Korea with riot gear to deal with potential domestic protests, a la the revolutions in the Middle East. It’s not uncommon for the DPRK to draft its students into labour when times are tough. However, the DailyNK and other North Korean observers believe the project is doomed to failure, and all except for Kim Jong-Un will be punished as a result.

Source: DailyNK / The Huffington Post / The Telegraph c/o @freenorthkorea


Groundbreaking ceremonies and construction of Special Economic Zones between North Korea and China

This project has been mentioned a few times, the most recent being unexplained delays in the groundbreaking ceremonies for new Special Economic Zones designed to encourage trade between North Korea and China and possible economic reforms for the hermit kingdom. From Yonhap:

North Korea and China on Wednesday broke ground on a border island to develop it into an economic zone, spurring speculation that Pyongyang may embrace Chinese-style economic development to try to revive its faltering economy.
The groundbreaking ceremony came on the heels of North Korean leader Kim Jong-il’s weeklong trip to China in May to study the neighboring country’s spectacular economic development, his third trip to China in just over a year.
Beijing has been trying to lure its impoverished ally to embrace the reform that lifted millions of Chinese out of poverty and helped Beijing’s rise to becoming the world’s second-largest economy.
On Wednesday, some 1,000 people from North Korea and China, including Kim’s brother-in-law, Jang Song-thaek, and Chinese Commerce Minister Chen Deming, attended the ceremony on Hwanggumphyong Island in the Yalu River that separates the two countries.
Several dozen giant advertising balloons were floating in the air as a military brass band played festive songs, and hundreds of doves were released at the ceremony.
The messages on the balloons read "North Korea-China friendship and joint development" in a symbolic gesture for their commitment to the project.
The two sides also reportedly signed a deal on the joint development project, including lease terms on Hwanggumphyong. No details were immediately available.
The massive ceremony came two days after Pyongyang said it will turn the Hwanggumphyong and Wihwa islands into the economic zone to boost friendly ties with China and expand and develop external economic relations.
The North’s parliament said Monday that the development of the zone will start from the Hwanggumphyong district.

Check the Korea Herald link below for more technical detail on the projects. Hopefully these economic zones don’t have the same underwhelming results as similar SEZ projects in the past.

Source: Yonhap / Korea Herald


Speculation, then cancellation, of a Kim Jong-Il summit with Russian President Dmitri Medvedev

Speculation was rampant throughout the month of June that Kim Jong-Il would again be leaving North Korea via his private train to meet Russian President Dmitri Medvedev. The meeting was rumoured to occur on either June 30th or July 1st in the Russian city of Vladivostok, just 130km from the North Korean border. From Reuters:

VLADIVOSTOK, Russia (Reuters) – Russian authorities are preparing for a possible visit by North Korean leader Kim Jong-il, a local official in Russia’s Far East said on condition of anonymity on Monday.

"We are making preparations," said the local official, who asked not to be identified because of the sensitivity of the situation.

The official declined to give any details about the trip other than that Kim was expected to travel to Russia’s Far East, which borders North Korea, in an armored train.

When asked if Kim was due to visit, the governor of Russia’s Far Eastern region of Primorye, Sergei Darkin, told reporters in Moscow: "I cannot comment on what presidents of other countries plan to do. You will soon find out."

A couple of days later, according to Japanese news outlet Kyodo

North Korea has called off a plan for its leader Kim Jong Il to hold a summit with Russian Dmitry Medvedev in this Russian Far East city on Thursday, multiple Russian government officials told Kyodo News on Wednesday.

Among the reasons given by the North Korean side for canceling the trip, in which he was expected to cross the border by rail Thursday and arrive in Vladivostok within the day, was that Kim’s health was not in the best condition to travel, they said.

But according to the officials, the cancellation came after the two sides failed to narrow differences over the summit agenda.

Kim was looking better than he has in years during his China visit (see video at the bottom of this article), but perhaps he’s taken a turn for the worse? Perhaps this will get rescheduled soon.

Source: Kyodo News / Reuters


A new resettlement facility for North Korean defectors in South Korea, the third of its kind

In November last year, South Korea announced it had taken in its 20,000th defector from North Korea. This number has been steadily increasing since, now up to 21,700 in total, and putting pressure on the educational facilities that aim to integrate North Koreans into the unfamiliar capitalist way of life. Yonhap says:

The move is the latest reminder that the flow of North Korean defectors isn’t letting up despite Pyongyang’s harsh crackdown on escapees. Seoul is now home to more than 21,700 North Koreans.
South Korea has already been running two other resettlement centers, known as Hanawon near Seoul to help the defectors better adjust to life in the capitalist South.
Still, the government will break ground for another resettlement center in Hwacheon on July 7 as the two current facilities are running at full capacity, Unification Ministry spokeswoman Lee Jong-joo told reporters.
The area is about 118 kilometers northeast of Seoul.
She also said the government is planning to offer re-education for former North Korean teachers, doctors and other experts in the new resettlement center to be built by the end of 2012.
The announcement comes amid the latest dispute between the two Koreas over nine North Koreans who defected to the South earlier this month.
Seoul has indicated it will not return the North Korean defectors despite the North’s request for repatriation. The North usually claims South Korea kidnaps its citizens, charges that Seoul denies.

A temporary solution to hopefully a temporary problem… 21,700 down, 23,978,300 to go!

Source: Yonhap


“Secret” meetings between South and North Korea for a proposed summit revealed

This is already old news, but reveals the tumultuousness and communication breakdowns that occur regularly in inter-Korean politics. On June 1st, North Korea’s state run media outlet KCNA loudly announced that South Korea was secretly attempting to bribe North Korea to a summit meeting in April:

It is a sheer lie that at the Beijing secret contact the south side briefed the DPRK side on the "real intention" reflected in the "Berlin proposal" made by traitor Lee.
Now that the Lee group let the spokesman for Chongwadae open to public the above-mentioned secret contact first on the basis of fabrications and is busy floating nonsensical stories, the DPRK side has no option but to clarify it as it happened.
Finding it hard to evade the responsibility for having driven the inter-Korean relations to catastrophe, the Lee group was aware that the crisis in the closing period of its rule might further deepen due to the situation. Hence, entering April the group made repeated requests to "hold a secret contact for the ‘summit talks,’ saying it would no more talk about ‘Cheonan’ warship sinking case and Yonphyong Island shelling case."
And it made poor excuses that what matters is that Lee’s "policy towards the north" is "misunderstood" by the north and the south, in fact, stands for the improvement of the north-south relations.
Kim Chon Sik, chief of the policy room of the puppet ministry of unification, Hong Chang Hwa, director of the intelligence service, and Kim Thae Hyo, senior presidential secretary for foreign strategy of secretariat of Chongwadae, and others came out to the venue of the secret contact that started on May 9. They, however, began playing jugglery to wrest apology from the DPRK side, asserting that the above-said cases were "mountains to be crossed with wisdom" for the improvement of the south-north relations. This was a breach of the promise made to the DPRK side earlier.
When it declared that it was preposterous to say the word "apology" over the cases with which it had nothing to do and just measures for self-defence, they asked it to put forth "a compromise proposal" to be declared before the world, the proposal which cannot be interpreted as apology, when viewed by the north side but as apology when viewed by the south side. They implored the north to "make a little concession".
When the DPRK side told them to go back to Seoul at once, saying it is not necessary to discuss the issue of the summit talks in which unreasonable "apology" raised as a pre-condition, they tried hard to keep the contact going on at any cost, saying that it would not be long before Lee Myung Bak’s tenure of office would end, the present authorities are hard pressed for time and it is more favorable to push forward the inter-Korean relations by joining hands with the conservative forces, in stead of doing so with the progressive forces.
Noting that a program for all events for the opening of the "summit talks" has already been worked out, they said that depending on the settlement of the issues of the two cases, they expected to open ministerial talks for the "summit talks" late in May to announce agreed points, hold the first round of the "summit talks” in Panmunjom late in June, the second one in Pyongyang two months later and the third round of the "summit talks" during the summit for nuclear security slated to take place in March next year. They earnestly begged the DPRK side to take this embarrassing situation into consideration.

On June 9th, KCNA had more to say regarding alleged bribes to encourage North Korea to the summit:

When the contact was on the verge of a rupture, Hong Chang Hwa took out enveloped money from a suitcase at the order of Kim Thae Hyo, who was going to give it to us. We rejected it at once, and Kim blushed and got irritated. Hong hurriedly put the money into the suitcase in an awkward movement and left without exchanging proper parting words with our delegates.

At first the group of traitors asserted that there was no case of enveloped money. But now it distorts the fact by claiming that the money was for expenses to be paid traditionally by the sponsor of contact rather than "reward" for leading the contact to "summit talks".

If it is usage for a party sponsoring any talks to pay necessary expenses as asserted by the south side, why didn’t the south side present the enveloped money at the time of the two preceding rounds of contact?

The south side was well aware that the DPRK embassy provided lodging and boarding and vehicles. Then, was it going to pay the embassy the said enveloped money for living expenses during its stay? Its far-fetched assertion has gone far.

Of course, South Korea has an opposing view of how these discussions went down. From Yonhap:

South Korea’s point man on North Korea said Wednesday that Pyongyang first proposed a secret meeting that has become the latest hurdle in inter-Korean relations.

The two Koreas have accused each other of distorting the facts of their secret meeting in Beijing in May after Pyongyang revealed details of the meeting earlier this month.

The North claimed Seoul negotiators had "begged" for three inter-Korean summits and offered an envelope of cash as an inducement, allegations dismissed by Seoul.

South Korea said the meeting was designed to get North Korea to apologize for its two deadly attacks on the South last year, as part of Seoul’s efforts to break the current impasse and put inter-Korean ties back on track.

"It was North Korea that made the offer for the unannounced contact," Unification Minister Hyun In-taek said in a parliamentary session.

He said the North’s disclosure of the meeting was aimed at getting Seoul into trouble and splitting public opinion in the South.

Many Pyongyang observers point out that the North has possibly decided to simply wait out Lee Myung-bak’s term in office, as his term is nearing an end and a shift in North Korean policy may be imminent with a new government.

Source: KCNA (1) / Yonhap


A nice write-up from Martyn Williams about North Korea’s IP addresses

The amazing (and pleasantly niche) blog North Korea Tech has an interesting piece detailing North Korea’s IP address blocks managed in Thailand and China. A good place to start if you suspect the North Koreans of invading your PC!

Source: North Korea Tech


And we’ll finish up for now with KCNA video of KJI’s May trip to China. He’s certainly using his left arm a lot more these days.

Source: stimmekorea’s YouTube

Permanent link to this article: http://www.openingupnorthkorea.com/archives/847

May 30

Kim Jong-Il’s week-long whirlwind tour of China a lesson in economic reform.

Kim Jong-Il shakes hands in Beijing with Chinese President Hu Jintao

The big story of the past week was North Korean leader’ Kim Jong-Il’s sudden and long visit to China. As is his M.O., Kim travelled by private armored car. The trip was unannounced and caused rampant speculation among Pyongyang-observers that the occupant was actually leader-to-be Kim Jong-Un, off to meet Chinese leadership in much the same was his father prepared for succession in 1983.  China officially announced that Kim Jong-Il was in the country, but was secretive about his agenda and whereabouts. KCNA, North Korea’s state-run media outlet,  also made the rare move of publishing that the Dear Leader was in China—such announcements are usually not made until he is safely returned home.

imageKim travelled with an entourage of 70 senior officials, including de facto second-in-command Jang Song-Thaek, and Kim Jong-Il’s fourth wife, Kim Ok (pictured). The trip seemed entirely economic based, and possibly set up to be a crash course on Chinese economic reform that the Chinese have been pushing North Korea towards for years.

 

Here’s the rough summary of the events over the 7 day and over 6000km trip:

  • Kim Jong-Il’s armored train crosses border at Chinese city of Tumen at 6:20AM local time.
  • Changchun – Kim does an inspection trip to automobile manufacturing plant.
  • Mudanjiang City – Kim visits a site honouring his father, Kim Il-Sung for his guerilla efforts against the Japanese.
  • Mudanjiang City – A welcome party is held for Kim and entourage, with Chinese State Councilor Dai Bingguo as host.
  • Yangzhou – Kim tours an economic development zone.
  • Yangzhou – Kim stays in a luxurious state guesthouse.
  • Yangzhou – Dinner & theatre with former Chinese President Jiang Zemin, of which both Kim Il-Sung and Kim Jong-Il have had good relations with.
  • Nanjing – Kim Jong-Il visits a Panda Electronics store.
  • Beijing – Kim Jong-Il and Chinese leader Hu Jintao meet for a summit.
  • Beijing – Kim demonstrates a desire to return to Six Party Talks aimed at dunuclearizing Korea.
  • Beijing – Kim notes for the third time (and on his third trip to China in a year) the desire for strong relations between the countries to be passed to the "younger generations".
  • Beijing – Hu issued a 5 step proposal that can basically be summed up: increase communication between the two countries, and the support and cooperationg between DPRK and China can continue, and cooperation on crucial international and regional issues (ie. stop attacking the South).
  • Beijing – Kim invites Hu to North Korea, which is accepted.
  • Beijing – A banquet is held in honour of Kim.
  • Beijing – Kim’s train departs Beijing on Thursday at 2:00PM.
  • Dandong – Kim returns to North Korea by train, and is welcomed at the border by son Kim Jong-Un, sister Kim Kyonng-Hui and other senior officials.

It seems to me that there was a lot of empty agreement coming from the North on opening up with economic reforms. In turn, China seemingly didn’t make any multi-billion dollar commitments to the North either, which is likely what the DPRK Leader was hoping for. Groundbreaking ceremonies were set to kick off May 24th for the Hwanggumpyong joint econonomic zone (discussed earlier) on the Yalu river bordering the two countries, as well as for new development projects in the Northeastern Rason economic zone. However, these ceremonies were cancelled and I’m unable to discover whether these plans are simply on hold or headed to another fate.

The full details of the tour are best described by the North Korea Leadership Watch blog. The coverage includes candid photos, charted routes overlaid on Google Earth and other great detail from all the right sources, including Yonhap, The Chosun Ilbo, Xinhua, DailyNK, the Hankoryeh, and more. Start here and work your way through, if interested.

Source: North Korea Leadership Watch

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May 17

UN report on illegal weapons trade between Iran and North Korea blocked by China.

Are the Chinese protecting North Korea? Or is this a calculated move to avoid backlash for allowing illegal shipments through their country? AP reports:

China blocked the release Friday of a report by U.N. experts accusing North Korea of violating U.N. sanctions that ban the export and import of ballistic missile and nuclear-related items as well as conventional arms and luxury goods.

China’s U.N. Ambassador Li Baodong told reporters after a closed-door meeting of the Security Council to discuss implementation of two rounds of sanctions against the North that Beijing is "still studying that report."

The report by the seven independent experts appointed by Secretary-General Ban Ki-moon to monitor implementation of sanctions was sent to the 15 Security Council members for their approval by Tuesday morning. Diplomats said China was the only country that objected to its immediate release.

Britain’s deputy U.N. ambassador Philip Parham said there was "pretty broad support" for the report in the council but China had problems with it.

The panel’s first report, in May 2010, was also held up by China, which has close ties to North Korea. It was finally released in November after Beijing dropped its objections.

In Beijing, Foreign Ministry spokeswoman Jiang Yu said in a faxed statement that "China is earnest and responsible in implementing Security Council resolutions." She said the panel’s report "does not represent the Security Council’s position" nor the position of the council committee that monitors sanctions against North Korea.

The report, obtained Monday by The Associated Press, said North Korea remains "actively engaged" in exporting ballistic missiles, components and technology to numerous customers in the Middle East and South Asia in violation of U.N. sanctions.

The panel said prohibited ballistic missile-related items are suspected to have been transferred between North Korea and Iran on regularly scheduled flights of Air Koryo and Iran Air, with trans-shipment through a third country that diplomats identified as China.

It also said North Korea has completed — or is about to complete — construction of a second launch site for long-range rockets on its west coast close to Tongchangdong which could be used for ballistic missiles in violation of U.N. sanctions. It said the installations appear "bigger and more sophisticated" than the original site on the east coast used for the 1998, 2006 and 2009 Taepodong missile launches.

The Security Council imposed sanctions against North Korea after its first nuclear test in 2006 and stepped up sanctions after its second test in 2009 to try to derail the country’s rogue nuclear weapons and ballistic missile programs. The second round strengthened an arms embargo, authorized ship searches on the high seas for suspected banned items, and ordered an asset freeze and travel ban on companies and individuals involved in the country’s nuclear and weapons programs.

While U.N. sanctions haven’t stopped the North’s ballistic missile and nuclear programs or its arms trading, the panel said, "they have made it more difficult and expensive for the country to pursue these."

But North Korea has exploited loopholes and other vulnerabilities in shipping and transportation practices and has become increasingly sophisticated in establishing shell and front companies and offshore financial agents, and in using multiple affiliates and aliases to mask individuals and companies subject to sanctions, it said.

As an example, the panel said information has recently come to light that Union Top Management, the shell company registered in Hong Kong that chartered an aircraft impounded in Bangkok last December with 35 tons of arms, planned five different fights. The Ilyushin Il-76 cargo plane flying from the North Korean capital, Pyongyang, with the arms was the first flight, it said.

Portugal’s U.N. Ambassador Jose Filipe Moraes Cabral, who chairs the Security Council committee monitoring sanctions against North Korea, told reporters he believes the allegations in the report "are indeed serious."

He said he expects the committee to informally discuss the panel’s findings and recommendations.

According to the panel, North Korea announced several major escalations in its nuclear program during the past year: the weaponization of separated plutonium, revelation of a uranium enrichment program, construction of a light water reactor, and announcement of a program to develop nuclear fusion technology to obtain "safe and environment-friendly new energy."

The panel made 24 recommendations on improving monitoring of sanctions and oversight of their implementation and strengthening measures to prevent the export and import of banned items including enhanced cargo inspections and customs vigilance.

The panel said North Korea should be "compelled" to abandon its uranium enrichment program, saying it believes the government’s aim in starting it was primarily for military purposes. North Korea should also abandon construction of a new light water reactor, which it is using as justification for the uranium enrichment program, it said.

Nothing really new here, aside from the allegations that China has turned a blind eye to the weapon sales between Iran and the DPRK. North Korea has been frequently suspected of, and I would imagine guilty of, selling weapons to Iran, Libya, and Burma. Could an increased round of sanctions from the UN really help in any meaningful way?

Source: Associated Press

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May 11

North Korea denies any involvement in South Korean bank cyber attacks.

One major story that I haven’t put any focus on yet is the massive cyber attack on South Korea’s agricultural co-op bank, Nonghyup. On April 12th this year, a distributed denial of service attack crippled the bank’s systems for several days, affecting millions of customers. The attacks originated from a computer causing the same trouble in March 2010, which was at the time traced to be from North Korea. According to JoongAng:

Prosecutors initially suspected an inside job but now say that North Korea got lucky by randomly infecting a computer that happened to be hooked up to a major South Korean organization’s servers. They say the attack didn’t have a clear or obvious purpose except for causing trouble.
Prosecutors said they found 81 malignant codes on the IBM worker’s laptop that had been encrypted to prevent discovery. The encryption method, prosecutors said, was very similar to that used in DDoS attacks last year and in 2009, which North Korea was believed to be behind.
Seoul prosecutors said the IBM worker’s computer had been infected on Sept. 4, 2010, and subsequently manipulated from afar via the Internet to allow it to extract information.
Kim Young-dae, a senior prosecutor from the Seoul Central District Prosecutors’ Office, said, “1,073 A4 pages worth of information were taken during the past seven months.” Kim said a key-logging program had been installed, giving the perpetrators access to administrator passwords. However, the data extracted was not related to customer transactions, Kim said.
The laptop was then commanded to cause destruction, and on April 12 it wreaked havoc on 273 of Nonghyup’s 587 servers in two attacks lasting 40 minutes.
Hackers deleted the malicious programs from the laptop after the attacks, prosecutors said, which made tracking them “extremely difficult.”
Kim said the perpetrators hadn’t targeted Nonghyup, but by chance managed to infect a computer linked to its servers.

North Korea released their response to these allegations, by way of state run news outlet KCNA:

A spokesman for the Ministry of the People’s Armed Forces under the DPRK National Defence Commission issued a statement on Tuesday censuring the south Korean group of traitors for their bad habit of pulling up the DPRK.

The statement said:

South Korea reportedly met the "greatest banking computer disturbance ever in history", in which the banking computer network of the "National Agricultural Cooperative Federation" has been put at the worst paralysis since April 12.

This case caused a great loss and south Korea experienced a hot agony of shame in the eyes of the world.

What is at issue is the fact that the group of traitors let the puppet Intelligence Service and prosecution finally announce this case as "done by the north" after making "joint investigation" into it for nearly one month.

What the group claimed as evidence to link the case with the DPRK is that the IP used in attacking the said computer network was identical with the IP of the DPRK Ministry of Post and Telecommunications and the attack was based on the delicate and accurate way of remote control whereby its attacker was supposed to be a special cyber unit. It also asserted that such attack was hard to be carried out without mighty human and material resources and this was not an attack for "gaining specified interests" such as stealing fund and data but repeated attack aimed at "indiscriminate destruction."

Its assertions are just absurd argument based on unreasonable ground.

Even the members of the federation hard hit by what happened, in actuality, refuted the announcement that "the north was responsible for the cyber attack" as a "hasty conclusion" as it lacked scientific accuracy. Even the Defense Security Command of the puppet army known not to lag behind others in investigating cases officially declared that the incident cannot be branded as an "attack made by the north Korean military."

Moreover, experts cast doubt about the assertion that "it was done by the north," querying "Had the IPs used for the above-said attack belonged to U.S., Japan or south Korea, the U.S., Japan and south Korea should have been accountable for having created this confusion."

Last year the south Korean authorities asserted that the "Cheonan" sinking case was "linked with the north" as the propelling body of the torpedo they claimed sank it was inscribed with letters "No. 1." Different circles of south Korea are now widely jeering at them, putting up questions as to how many letters "No. 1" were attached to the IPs which were used for attacking the Federation’s banking computer network.

In the final analysis, the story about "the north’s involvement" spread by the group of traitors is creating fresh suspicion even in its own camp and it is, therefore, derided by people for being one more farce and charade. The above-said story floated by the group is aimed at saving its policy of confrontation with the north from shaking to its very foundation, weathering the crisis of its state administration fully disclosed in the closing years of its rule before and after the April 27 by-election and evade the responsibility for having stemmed the trend of national reconciliation, unity, peace and prosperity.

All the developments go to prove that the group of traitors’ rumor that "the north was responsible for what happened" is one more farce staged against the nation to realize its sinister attempt and an anti-DPRK charade as ridiculous as the "Cheonan" warship sinking case.

There are sayings that one should reflect on one’s deed before pulling up others and one had better mind one’s own business.

The group of traitors should boldly discard its bad habit of finding fault with others.

And it should immediately stop its reckless war exercises, waiting for someone’s "contingency" to take place, unaware of its situation where it is threatened with total collapse.

The group of traitors should bear in mind that the more anachronistic anti-DPRK farce and charade it orchestrates, the bitterer disgrace and fiasco it will face.

Typical North Korea bluster. As with last March’s Cheonan warship sinking, they are outright denying any involvement, which has been a prickly issue for the South Korean government who insist on apologies for the Cheonan attack and Yeonpyeong Island shelling before a return to Six Party Talks aimed at denuclearization can resume. South Korea’s investigation is still ongoing.

Source: Korea JoongAng Daily / KCNA

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