Category Archive: Economy

May 10

North Korea and China to cooperate on joint border island project on the Yalu River.

Something to keep an eye on, North Korea and China are quickly developing a free trade zone on the Yalu river that separates the two countries. I don’t have any specific details, but it seems likely that it will be close to the Friendship Bridge (and Broken Bridge) connecting the Chinese city of Dandong to Sinuiju in North Korea. From AFP:

North Korea and China will start work on developing a river island on their border this month, a report said Tuesday, amid an international drive to coax Pyongyang back to nuclear disarmament talks.

The two countries plan to hold a groundbreaking ceremony on May 28 for development of the island on the Yalu River, the South’s Yonhap news agency said.

Pyongyang has reportedly worked out a special law to set up a free trade zone on the island, which is separated by a narrow waterway from the Chinese city of Dandong.

The North’s state media disclosed a deal last year to build a new cross-border bridge on the Yalu River as part of a major economic package announced by Beijing.

The two sides have agreed to turn the island into a base for logistics, tourism and manufacturing that would be linked to China’s industrial complex to be built in Dandong, Yonhap said.

From Dandong, China looking towards Sinuiju, North Korea. Souce: Wikipedia

Of course, this sort of free economic zone has been experimented by North Korea in the past, but ultimately their demanding conditions and a typically poor return on investment from foreign interests has met with mediocre results. Existing free trade city Rason was an experiment with Russia and China (the countries sharing a border with Rason in the northeast) that was mostly a failure, businesses and deals exist but are not profiting either side. Development is allegedly picking up in that city as well, but this new island will be something to keep an eye on (keep updating, GeoEye!)

Source: AFP

Permanent link to this article: http://www.openingupnorthkorea.com/archives/821

May 10

Popular US evangelist Franklin Graham visiting North Korea.

Franklin Graham, the son of famous American evangelist Billy Graham, is in Pyongyang and meeting with foreign minister Pak Ui-Chun. AFP reports:

The preacher heads Samaritan’s Purse, an evangelical Christian aid organisation that was one of five US groups to send representatives on a visit to the isolated communist state in February.

Samaritan’s Purse said in April that parts of North Korea were expected to run out of food in less than two months due to a poor harvest even if foreign donors agreed to provide assistance.

It said that a harsh winter had reduced crop yield by up to half and that some people were already eating grass, leaves and tree bark.

The United States and South Korea have been cautious over reports of dire food shortages in the North, with some officials suspecting that the communist state is exaggerating the problem to win assistance.

North Korea must be loving all the humanitarian aid attention they’ve been receiving lately. Former president Carter last week, Graham this week… The UN’s World Food Programme has kicked off an emergency campaign to send aid, and probably many other NGOs are rushing to help as well. If only the aid could actually reach the starving masses it is intended for…

Source: AFP

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Note: My break from updating is over and I’ve come back with a few ideas for running this blog a little more efficiently… which means more posts, better posts, more consistent formatting, as well as streamlining posts concurrently with Twitter (and I may just venture into Facebook territory as well). I also plan to spend some more time updating the Movies/Books pages as well as a Downloads page that I’ll be putting up soon (mmm… DPRK mp3s and Red Star Linux isos!)

Permanent link to this article: http://www.openingupnorthkorea.com/archives/816

Apr 11

News in brief + a brief hiatus

Kim Jong-Un doesn’t get a promotion at Supreme People’s Assembly

The Supreme People’s Assembly, constitutionally the most powerful entity in North Korea but in reality a rubber steam parliament for the Korean Worker’s Party under Kim Jong-Il, has convened its first meeting of 2011. Many Pyongyang watchers suspected the SPA would be used as on opportunity to bolster the rank of leader-to-be Kim Jong-Un. Neither Jong-Un or his father Kim Jong-Il were in attendance.

Source: North Korea Leadership Watch

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North Koreans in Libya ordered to stay put

As countries around the world scramble to evacuate their citizens from the chaotic anti-regime uprisings in Libya, North Korea has sent a different message to its own people in the country: Stay there. Pyongyang via their Libyan embassy has ordered the 200+ North Koreans abroad in Libya, likely living there to earn foreign currency to send home, to “follow the measures of the Libyan [Gadhafi] government”. The North Koreans being denied permission to return home has led to speculation that the Kim regime is attempting to quell the spread of information back home regarding the revolutions and uprisings occurring in the Middle East.

Source: Yonhap News

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North Korea pulls out of Hyundai resort tourism

The Mt. Kumgang resort, a joint tourism project between Seoul-based Hyundai Asan and the North Korean government, saw over a million South Korean tourists pass through since 1998. However, 2008 the shooting death  of a South Korean tourist by a DPRK soldier has had the tours suspended since. Hyundai has paid for much of the facilities and infrastructure at the resort, but now the North has backed out of the agreement between the government and Hyundai Asan. Hyundai had an agreement forged in 2002 giving them land use rights in the majestic mountain region until 2052, but this appears to be a renege on the agreement. The move is seen as a possible ploy by the North to force Hyundai to resume tours (without the condition of allowing a murder investigation for the SK tourism), or encourage Chinese tourism to the resort.

Source: The Chosun Ilbo

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On a side note, I’ll be on vacation for awhile, thus incommunicado and not updating this space. Will get right back to it in a couple of weeks, meanwhile I’ll be catching up on some reading on a sunny beach in Cayo Guillermo.

Permanent link to this article: http://www.openingupnorthkorea.com/archives/812

Mar 24

North Korea donates $600k in aid to Japan

The government of North Korea chipped in $500,000 USD, while the Red Cross in North Korea tacked on another $100,000 donation to relief efforts in Japan (specifically ethnic North Koreans living in the country) after an 9.0 magnitude earthquake devastated the north east with tsunami waves. The government’s cash was to assist pro-Pyongyang Koreans, while the Red Cross money was delivered to it’s Japanese counterpart. North Korea and Japan have no formal diplomatic ties.

That is a lot of money these days for cash-strapped North Korea, so one wonders if there is a suggestive gesture in this donation to their Chongryon contemporaries in Japan that they are still a unified people (p.s., send money). Especially given the most recent United Nations report that 6 million of North Korea’s 24.1 million population are currently in urgent need for food assistance. Ethnic North Koreans living in Japan and sending money back to their mother country is a significant portion of North Korea’s income.

Source: Yonhap / North Korean Economy Watch

Permanent link to this article: http://www.openingupnorthkorea.com/archives/798

Mar 16

The past week in review

Work had me travelling this past week and I’ve been unable to pull myself away for updates. Here’s a synopsis of what’s been going on on the peninsula:

North demands all 31 of the North Koreans that drifted accidentally into the South be repatriated; South maintains 4 wish to stay

As discussed previously, North Korea demanded all 31 citizens to be repatriated. The North then demanded that the 4 who wish to defect meet their families at the Panmunjom border. When that didn’t happen, the North finally conceded that the 27 be returned by sea. Bad weather will likely prevent this from happening today, but may be rescheduled for tomorrow.

Below: Video of a North Korean wife and daughter denouncing the South for “coercing” their husband/father to defect.

Source: The Chosun Ilbo / Open Radio for North Korea

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Associated Press CEO makes visit to Pyongyang

Thomas Curley, the CEO of Associated Press, one of  the largest news agencies in the US, made a personal trip to North Korea to petition for a bureau to be opened in Pyongyang. Seems unlikely, but who knows?

Source: Yonhap via North Korean Economy Watch

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North threatens “sea of fire” in Seoul if joint SK-US military exercises proceed, jams GPS signals

Last week, North Korea strongly protested South Korea – US military exercises and once again threatened all out war should the provocations continue. DPRK has taken the opportunity to once again demonstrate it’s ability to jam GPS signals; intermittent GPS failures occurred several times in northwestern South Korea military bases. The South issues a formal protest requesting the North stop the jamming in the form of a letter, however the North declined to accept the letter. No reasons were cited.

Source: Chosun Ilbo / AFP / GPS Daily

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Kim Jong-Un gets invitation to visit China in July

‘Nuff said, see link below for more words with the same amount of detail.

Source: Mainichi Daily News

Permanent link to this article: http://www.openingupnorthkorea.com/archives/787

Feb 25

Why North Korea isn’t going to overthrow its dictatorship anytime soon

mansudae

I’m going to share a somewhat longwinded rant that I posted on the news aggregation website Reddit. A number of popular posts were excitedly discussing the possibility of revolution in North Korea, while basing most of their claims on wild speculation and sometimes outright false information.

One of the top stories in /r/WorldNews, with over 1500 comments is the hype surrounding a certain article that citizens in North Korea are staging unprecedented public protests against the Kim Jong-Il regime. The original article is here: http://www.atimes.com/atimes/Korea/MB25Dg01.html

The Asia Times article cites most of its information from the Chosun Ilbo, South Korea’s most popular newspaper. I can’t find the article they speak of, but there’s plenty of alternative stories on the English Chosun site. This SK professor makes some good points:

  • Discontent: It’s been a harsh winter, and North Koreans are once again very hungry. Rations aren’t being distributed properly, because the international food aid on which the country has been dependent for decades is all sparse. What does come through is coming from China, and is primarily reserved for the military and the elite.
  • Easier access to information: Word is getting out about just how deplorable the North Korean situation really is to its citizens. Cellphones are becoming more widespread, though strictly compartmentalized with no outside access. People close to the SK or Chinese borders are sometimes able to get a signal from those countries and communicate with the outside world. South Korean television shows and anti-regime propaganda videos are finding their way into peoples hands.
  • Chinese influence: Information is exchanged during trading sessions. I wouldn’t put too much stock in this information spreading quickly or very far.

First let me get into a little bit about how North Korean society is structured. Pyongyang, the capital, is where most of the elite and those most loyal to the party can live. It is considered a great reward to be moved from one of the provinces into the capital. They get first dibs on pretty much everything. A far cry from the luxuries we take for granted, but idyllic in the eyes of most North Koreans.

Flattery will get you everywhere in the DPRK. Young people aspire to serve in the military, for a 10 year period, just for the shot at getting a good job and becoming a party member. Anything you say against the regime will very likely put you into a labour camp. Once you’ve served time in the labour camp, you’ll either die or get shipped to one of the crummier provinces, never to rise in rank again. It really doesn’t take much for this to happen. Almost all military defectors in South Korea have done so because they realized their "careers" were in ruins for good. The Kim Jong-Il regime, like his father’s (Kim Il-Sung) before him, doesn’t take any shit.

I’m sure every Redditor has read George Orwell’s 1984. Kids ratting out their parents. Neighbours throwing neighbours under the bus for an offhand comment, or something trivial such as not dusting the portraits of the Great and Dear leaders in their households. Spies are literally everywhere in North Korea, and for the most part, people are absolutely terrified to speak out. So they put on a smile and continue worshipping the Kim personality cult. When you get in trouble, typically your entire family goes with you, effectively "purging the bad blood". Many North Koreans fear more for their families lives than their own, so behave accordingly. It is truly a dictatorship based on fear.

Still there is a fierce nationalism in the country. From birth, North Koreans are taught to hate the USA and Japan. To a lesser degree, South Koreans, but in that case mostly just the "puppet" capitalist government that they teach is the cause of the North’s repression. The North is a mountainous region with many natural resources, but difficulty growing their own crops. The South is plentiful in farmland and food, but imports most of their natural resources. Korean reunification has been the ultimate goal since the end of World War II, or so either side would have their citizens believe. They would be a powerhouse if they could reunite, and the American military is blamed for keeping them divided. China props up the DPRK because they too are resentful of the strategic military positions the Americans have on the Korea peninsula. This was Kim Il-Sung’s goal, and all of the shortfalls in North Korean history are said to be an ongoing battle in a long running revolution for Korean supremacy.

Here’s another article about one of the protests in Sinuju, a border town near China. The protests were sparked by police cracking down on markets, which are typically ignored but technically illegal in the country. Many count on these markets to survive, as they are not receiving food from the state as they’re supposed to. When the police crack down on these markets, and there are no alternatives to food, people get understandably angry. But the protests were quelled pretty quickly. People were probably killed and injured. Many others and their families probably trucked off to labour camps never to be heard from again.

That being said, sometimes protests are allowed to happen. DPRK attempted a grand currency reform in late 2009 which screwed a great deal of the population out of any money they had in their savings accounts. Since Kim Jong-Il’s songun or military first politics are centered around strengthening their forces, the people can be convinced that the poor economic decision was the result of poor high level decision making outside of Kim’s scope. Demonstrations were held, citizens were not punished. The regime said "yes, this was a mistake, and now were are executing the people responsible", and that’s what happened.

When Kim Il-Sung had tapped his son to be successor, party members loyalties were put to the test. Many adored Kim Sr. but questioned the leadership capabilities of his reckless son. Thus, a lot of purging occurred where dissenting party members were executed or demoted, and key supporters were put in the vacant positions. Much of the leadership of North Korea are directly related to the Kim family, or to the original families that fought alongside Kim Il-Sung’s guerilla struggles against Japan (which he is largely lauded for achieving Korean independance, though history indicates his true impact was minimal). Kim Jong-Il is getting old and his health is questionable, and so in turn he is propping up his son, Kim Jong-Un for succession. This means a whole new round of purges, a tighter crackdown on defectors and malcontents, and more credit to Kim Jong-Un for anything nice that happens in North Korea. Jong-Un is allegedly to continue his father’s military-first policy, but is also being heralded as brining about the dawn of "CNC" or Computer Numerical Control– basically the automation of manufcaturing the improve the quality of lives of North Koreans. Part of this is the distribution of cellphones, computers and digital technology, though obviously cut off from the rest of the world.

South Korea’s just as in the dark about North Korea as the rest of the world. Yes, the SK government marked Kim Jong-Il’s birthday on the 14th by launching propaganda balloons filled with anti-regime pamphlets, shortwave radios, DVDs, etc. This is nothing new and will not bring about a revolution. South Korea has been launching these balloon propaganda campaigns for decades. It wouldn’t surprise me if North Koreans, seeing these balloons heading for their town don’t go into their houses and shut the doors. If you find a balloon, you must turn it over to the authourities. If you read the contents you will be punished. If you keep what’s in it, you’ll be punished. If you see someone else reading the material and don’t report them, you will be punished.

Here’s another article from the Korea Times about how Seoul has stated that there are no signs that the North Koreans are staging widescale protests. The protests are small, and localized, and have no chance of growing beyond that. People are not allowed to travel between provinces at will, and there are military checkpoints all over the country.

Sorry for this long-winded rant. In a nutshell, North Koreans can’t revolt because they lack the ability to organize. There are no mass communication tools available to them. There is a great fear of repression from the authourities. The only real opportunity for change in North Korea will be the death of Kim Jong-Il, and this must happen sooner rather than later, or Kim Jong-Un’s grip will become as strong as his father’s. The coup would happen at a high military level, and as I mentioned before, many of these people are family to the Kim dynasty. I’m going to stop now, I could probably go on for hours.

Source: Reddit.com

Permanent link to this article: http://www.openingupnorthkorea.com/archives/783

Feb 09

Bowling in Pyongyang: Photoblog from a Russian student

Our favourite Russian language LiveJournal, Show & Tell Pyongyang is a student from Russia who is currently living in and attending school in Pyongyang. This week we’re treated to an inside look at a Bowling alley and billiards hall in Pyongyang that many young North Koreans visit to kick back and relax. It’s not unlike bowling alleys we might find in North America or in other westernized countries; albeit stuck in a retro 80s feel.

Google Translate does a decent job of conveying the author’s captions; the bowling alley consists of a tribute to Kim Il-Sung who visited in 1994 (the year of his death), at least a dozen lanes with score keeping monitors and computers, rows of slot  machines, a few racing arcade machines from Namco and SEGA, and a second floor restaurant. The blogger also includes a short video of students bowling, to demonstrate that the alley isn’t as dimly lit as his photos might suggest:

Check out the full Google Translated post in the link below. Good stuff!

Source: Show & Tell Pyongyang

Permanent link to this article: http://www.openingupnorthkorea.com/archives/775

Feb 07

Site Updates & This past week in brief

Sorry, I’ve been busy and mulling about some prospects for the future of this site… but after a bit of a blog re-branding, here is a brief wrap-up of last week’s news:

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Fishing boat holding 31 North Koreans arrives at Yeonpyeong Island:

Details remain thin on this story but are expected to emerge shortly: 11 men and 20 women from North Korea have arrived on the shores of Yeonpyeong Island, the infamous border island that North Korea artillery-shelled last November. Early reports indicated that the 31 North Koreans wished to defect have since been dismissed; they have not yet expressed any desire to defect to South Korea. There are no children aboard, and are believed to have originated from the port city of Nampo. South Korea’s Joint Chief of Staff announced that intelligence officials will announce further details after further examination of the situation.

Source: Yonhap News

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February 8th Preliminary Discussions between North & South at Panmunjom:

Military officials on either Korean army will meet on the 8th at the border city of Panmunjom to coordinate a time and agenda for higher level military talks in the near future. South Korean president Lee Myung-Bak has even said he would consider meeting between with Kim Jong-Il directly, a move softening of South Korea’s typical-as-of-late hardline stance to negotiations with the DPRK.

Source: Reuters

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Defectors Send Back $10,000,000 Per Year:

There are over 20,000 North Korean defectors living in South Korea right now, and many of them transfer money back to their families in the impoverished North. Allegedly, families of North Koreans that defect are not punished as severely as they used to be (ie. marched off to prison camps), and are able to live comfortably off the money sent from families in the South. Is this the regime’s way of bringing in more foreign currency that will inevitably end up in their hands, or is enforcement, of what was once a severely punishable crime, too corrupted or lazy?

Source: The Chosun Ilbo

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Kim Jong Il’s 70th (69th) birthday is coming up on February 16th:

A national holiday in North Korea, and a milestone birthday at that (though technically 69 in Korean terms, where they often start off at “Age 1”). We’ll keep you posted on events surrounding any celebrations / hand-outs, if there are to be any in this cash-and-food-strapped year for the DPRK.

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Offbeat:

This weird device which is supposed to heal your body from physical fatigue through music and by “giving external stimulus to the meridian points of a body”. Does it alleviate the troublesome side effects of hunger?

Source: KCNA

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Enjoy the new site with less vanity (ReasonableMan.net was a vanity domain I’ve held for many years and decided to finally put to use with this blog… OpeningUpNorthKorea.com seems more appropriate after several months of operation.) I will get to the Book Reviews section shortly.

Permanent link to this article: http://www.openingupnorthkorea.com/archives/771

Jan 19

Time’s Up: DPRK extends economic growth plan to 2020.

DPRK2012

In 2007, North Korea made a pledge to its people: A Powerful and Prosperous Nation by 2012. The Stalinist state pledged a boosted economy and better lives for its people, through the usual Juche propaganda of self-reliance and more efficient processes such as the much hyped CNC. To downplay any real economical development in the last 4 years, North Korea has now announced a new broader vision: The “10-Year State Strategy Plan for Economic Development” headed by the “State General Bureau for Economic Development”. According to Korean Central News Agency:

This governmental body will handle all issues arising in implementing state strategy projects for economic development.

This step was taken at a time when miracles and innovations are being performed in the socialist economic construction everyday on the basis of a solid springboard laid for building a thriving socialist nation under the outstanding and tested Songun leadership of Kim Jong Il.

The above-said plan set a state strategic goal for economic development. It puts main emphasis on building infrastructure and developing agriculture and basic industries including electric power, coal, oil and metal industries and regional development. It, at the same time, helps lay a foundation for the country to emerge a thriving nation in 2012 and opens a bright prospect for the country to proudly rank itself among the advanced countries in 2020.

When the above-said strategy plan is fulfilled, the DPRK will emerge not only a full-fledged thriving nation but take a strategic position in Northeast Asia and international economic relations.

It seems likely that much of this “economic growth”, if any actually comes to fruition, will be partly attributed to nepotic leader-to-be Kim Jong-Un. The young successor, like his father Kim Jong-Il, but unlike grandfather Kim Il-Sung, has no real military background and no inputs into political ideology. Therefore, as with the succession from Kim Il-Sung to Kim Jong-Il, the propaganda machine will instead laud him as a “genius”, attributed to ideas and innovations to help boost the North Korean economy. However, the road ahead to a “Powerful and Prosperous”  DPRK will be hard fought for either leader as the US and South Korea maintain a hardline approach by enacting economic sanctions and refusing previously consistent foreign food/supply aid.

Source: The Chosun Ilbo / KCNA

Permanent link to this article: http://www.openingupnorthkorea.com/archives/754

Jan 18

Korea stricken with foot & mouth disease out break

Both South and North Korea have been afflicted with foot & mouth disease, with South Korea reeling from the most serious outbreak in its history. Reports from South Korea’s Unification Ministry state the North Korea has also been affected with the disease. Foot & mouth disease is highly contagious among animals with hoof-feet, such as cows, pigs and goats—a valuable resource for the starving country. The disease causes large blisters on the feet and mouths of animals that can rupture and seriously harm the animal, sometimes resulting in death. In rare cases, the disease can spread to humans as well.

As South Korea (as well as Japan) systematically slaughters over 1 billion US dollars worth of livestock in order to quarantine the disease, a more frugal North Korea is containing some afflicted animals, but eating others. A similar crisis on the Korea peninsula occurred in 2007, and cooperation between the rival states helped stem the outbreak; however heightened tensions and South Korea’s hard line stance towards the North may hamper such cooperation in 2011.

Source: BBC News / Korea JoongAng Daily

Permanent link to this article: http://www.openingupnorthkorea.com/archives/751

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