Archive for September, 2006

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DPRK-made Baduk Game

Thursday, September 7th, 2006

From the Korea Liberator and Sunday Morning Herald:

You can download the game here.

9/7/2006

South Koreans will be able to enjoy one of their favorite games on computer using a program written in communist North Korea released here Thursday.

“Silver Star 2006” –a North Korean-made computer program of the chesslike board game called Baduk in South Korea and more widely known as GO–was launched in South Korea as part of an agreement reached with the North in July, said ForOneBiz, the South Korean distributor.

The program can be downloaded for 33,000 won (US$35; euro27), part of which will be paid to the North as royalties, ForOneBiz said.

The company said it also plans to share its technology know-how with the North to improve the software.

The level of technology development in the impoverished North is a far cry from the neighboring capitalist South, which boasts the world’s highest per capita broadband connections.

As part of North Korean government controls on outside information reaching its people, outside Internet access is provided only to high-ranking officials and elite.

The game released this week isn’t the first time for a North Korean computer program to go on sale in the South. In March, North Korean software was launched here for the first time to help with input of repetitive words and provide various symbols and sound effects when people use word processors or send e-mail.

The two Koreas remain divided since the 1950-53 Korean War ended in a cease-fire, not a peace treaty. However, relations have warmed in recent years since a 2000 summit between leaders of the North and South, and the two sides are involved in a number of joint projects.

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Posted in Computing/IT, International trade, South Korea | Comments Closed

‘Most N. Koreans Vulnerable to Epidemics’

Wednesday, September 6th, 2006

From the Korea Times:
9/6/2006

A medical checkup of more than 1,000 North Korean defectors indicates that their fellow countrymen in the communist country are generally left defenseless against epidemics, a lawmaker said Wednesday.

Quoting a 2005 report by the state-run Korea Center for Disease Control and Prevention, Rep. Chung Hyung-keun said 77 percent of 1,075 North Korean defectors examined here were found to have suffered diphtheria and rubella while in the North.

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Posted in Epidemics, Health care | Comments Closed

Travel more difficult

Wednesday, September 6th, 2006

From the Daily NK:
Transportation Chaos in N.K… “1 Train Operating Every 10 Days”
9/6/2006

A dire source from North Korea informed on the 5th that the main railway Pyong-ra line (Pyongyang-Rajin) connecting east North Korea with the inland was suspended leaving people in extreme transportation chaos.

In a phone conversation with a reporter, Kim Min Chul (pseudonym, 47) of Hoiryeong, North Hamkyung province said “It took me more than 1 month to travel from Pyongsung, Pyongan province to Hoiryeong, North Hamkyung province.” Kim who went to Pyongsung and Suncheon in Pyongan province at the end of last July for trade revealed “I returned barely alive and having spent all my money on the road.”

Kim said “The passenger train that connects Pyongan and Chongjin, North Hamkyung province only operates once every 10 days and so the majority of people ride trucks or buses.”

The Shinuiju-Chongjin train service that departs Chongjin, North Hamkyung province for Shinuiju can only operate unto Kowon, North Hamkyung province as restorations for the railroad at Yangduk is not yet complete. The train that arrives at Kowon is then returned back to Chongjin, however this seems to take 10 days.

According to Kim, this past April an accident occurred on the railroad between Yangduk, South Pyongan province and Kowon, North Hamkyung province. A train was overturned and before any restorations could be made, the flood that coincided blocked the tunnel and the rail roadbed was washed away. In some parts of the region, 50m of the rail is warped and in mid-air.

On April 23rd 2006, a 13 carriage train collided with a freight train between the regions of Yangduk-Kowon on its way from Pyongyang to Pyonggang, Gangwon province. It was a large-scale accident where 270 soldiers and 400 civilians were concealed on the train. Kim supposes that at the time, North Korean authorities feared the accident would become public, therefore ceased railway operations for a period of time.

Kim said “At present, traveling long distances is particularly inconvenient as trains are not operating properly. As a result the main services between Yangduk, Pyongyang province, and the east with the inland have become virtually nonexistent.”

Train ticket cost a minimum of 5,000won ($1.67)

As trains are suspended ‘paying to car-pool’ is increasing, as costs rise dramatically.

One North Korean source said “It is becoming a custom that you automatically show a 5,000won($1.67) the moment you board a car. In the case you are carrying luggage, each baggage costs an additional 5,000won.” The cost of traveling from Wonsan, Gangwon province to Kowon, South Hamkyung province is 5,000won, from Wonsan to Pyongyang 20,000won($6.67) and from Wonsan to Hamheung, North Hamkyung province 10,000won($3.33).

The source said “People using trains ride cars between Yangduk to Wonsan and then board trains like ‘a relay race’ only barely returning home.”

The source relayed, unfortunate people travel by walking for over 10 days from Yangduk to Sudonggu, North Hamkyung province through the Bukdaeryeong mountain paths renown for it’s rugged terrain. These people climb over mountains eating stolen potatoes and corn in nearby fields, which has led to a rise in complaints by the people.

Having a bad influence throughout the economy … Skyrocketing prices

As the belt between the east and inland is disconnected, adverse affects are impacting throughout North Korea’s economy and the lives of the people. Even North Hamkyung province which encountered little flood damages is facing restraints as goods cannot be delivered. The people in the majority live off trade are in a situation where they cannot even embezzle goods from each other as trains have been suspended.

The railroad is a critical means of transportation to the point it is called the ‘Economy’s Artery.’ As an important railroad such as this has been suspended, the whole economy has recoiled and signs of shortage in food prevalent.

Accordingly prices at Jangmadang are escalating. In a phone conversation with Kim Sun Mi(pseudonym, 35) of Onsung district, North Korea, confirmed this fact. Kim said “As roads and railways throughout the country are becoming immobilized, prices are skyrocketing.”

Kim said “The cost of rice has risen at Jangmadang at 1,300won ($0.43) per kilo, corn is 300won ($0.1), corn oil is 2,800won ($0.93) a bottle, bean oil is 3,200won ($1.07) and pork 3,300won ($1.1).”

Kim said “At present, Kotjebi (street children) are becoming more prevalent in the districts of Chongjin, North Hamkyung and Dancheon, South Hamkyung province. With an obscure thought that ‘You can only live if you go to the borders’ they are drawing to the districts near China and the border areas such as Hoiryeong, Musan and Onsung.”

In the mid-90’s, as the country faced difficulties due to lack of power and old equipment, trains operated once every 10~15 days. In those days, when a train stopped briefly, people would detach windows and chairs putting them to fire.

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Posted in Automobiles, General markets (FMR: Farmers Market), Radio, Railways, Transportation | Comments Closed

NK Baduk Software to Hit Seoul

Wednesday, September 6th, 2006

Korea Times
9/6/2006
Kim Tae-gyu

Starting today, a South Korean venture start-up will market a North Korean paduk computer game, Silver Star 2006, here that is arguably the most advanced program for paduk, also known as go.

ForOneBiz yesterday announced the scheme to launch Silver Star 2006 that has won the FOST Cup, the annual computer paduk championship participated in by global contenders, for the past three consecutive years.

“In June, we reached an agreement with the North’s Samcholli General Corp. to debut Silver Star 2006 here,” ForOneBiz chief executive officer Kim Byung-su said.

“We inked a commission-based deal, not the conventional lump sum-based ones. We will take roughly 90 percent of sales income while the remaining 10 percent will go to Samcholli,” he added.

The price of the program, which can be downloaded at the Web site of ForOneBiz (www.i-silverstar.com) or ordered by calling (02) 2115-6035, is 33,000 won ($34.5).

The Silver Star series, called Unbyol in Korean, was developed by the North’s state-run Korea Computer Center in the 1990s. Experts say it has the most outstanding algorithm for baduk.

“We plan to improve Silver Star 2006 further by cooperating with North Korea. It will work because the North has a competitive edge in software while the South today leads the world in offline baduk techniques,” Kim said.

This is not the first time for North Korean software to go on sale in the South.

Earlier in March, the Seoul-headquartered BH Partners began selling the Speed-K4.0, a computer program developed by the North Korean agency, at its Web site (www.bhpartners.co.kr).

People can download the input software, which helps them easily type in sentences from a word processor or e-mail, at 5,500 won.

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Posted in Computing/IT, International trade, Samcholli General Corp., South Korea | 1 Comment »

Film shows DPRK military moving rice aid

Wednesday, September 6th, 2006

From the Donga:

Is S. Korean Rice Feeding Kim’s Army?
9/6/2006
 
A film was found featuring a scene in which the North Korea military handled 400,000 to 500,000 tons of rice, originally supplied by the South Korea government every year since 2000.

The film, which was made on May 24, might bring about some arguments as it intimates that the rice supplied to support North Koreans who are suffering from famine may be used for other purposes by the North Korean military.

The 3-hour long film broadcasted in Weekly Donga which was published on September 5 shows that rice with the seal of the Republic of Korea was loaded by North Korean soldiers into trucks from freight cars parked in Danchon station, Hamgyongnam-do.

Moreover, it also shows North Korean soldiers conducting guard duty on freight cars filled with rice and lying down in the cars while on duty, but no evidence was found as to the destination of the rice shipment. The film was made by a North Korean defector who sneaked back into North Korea again, and is known to be currently staying in a third country.

There is a possibility that North Korea has used military vehicles due to its inferior transportation system, but nonetheless, the intervention of the military in moving provisions violates the agreement between South Korea and North Korea. The agreement indicates that the organization which supplies rice to the people is limited to designated “Sumae-yangjeong-seong” under the DPRK administration.

The Ministry of Unification delivered 500,000 tons of rice from July of last year to this past February for the 2005 supply and has monitored the situation on 20 occasions. “The monitoring is conducted by four delivery personnel, but there’s a limitation of inspection since they do not reside in North Korea,” an official of the Ministry of Unification said.

“Only 30 percent of the ration supplied from South Korea is distributed to North Koreans, while the rest is going to military sites as soon as it is delivered,” Ho Hye-il, one of the North Korean defectors who worked as security guard at the inter-Korean summit in 2000, announced in his book published in June.

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Posted in International Aid, South Korea | Comments Closed

UK investor presses U.S. to ease N.Korea sanctions

Tuesday, September 5th, 2006

From Reuters:
9/5/2006

The chairman of British investment advisory firm Koryo Asia, which has bought North Korea’s Daedong Credit Bank, said on Tuesday it was pressing the U.S. to ease sanctions against the isolated communist country.

Colin McAskill confirmed to Reuters a newspaper report that Koryo Asia had taken over Daedong Credit Bank. Koryo is also an adviser to the Chosun Fund, which invests in North Korean assets.

“We will take on the U.S. over the sanctions stand-off. They’ve had it too much their own way without anyone questioning what they are putting out,” McAskill said in a report in the Financial Times on Tuesday.

Asked later by Reuters about the reported remarks, McAskill said, “That is true,” but declined to comment further.

North Korea defied international warnings and test-fired seven missiles in early July. Dubbed part of an “axis of evil” by U.S. President George W. Bush, the heavily militarised state enforces tight censorship and a strong personality cult of its leader Kim Jong-il.

The United States imposed strict economic sanctions on North Korea in 1950, some of which were eased under the Clinton administration in the 1990s.

The United Nations passed a resolution in July this year imposing sanctions on the country, demanding that North Korea suspend ballistic missile tests.

Daedong Credit Bank has most of its cash frozen under U.S. trade sanctions imposed last September, the Financial Times said. However, its new UK-based owners want to demonstrate that the accounts were earned legitimately and get sanctions lifted.

McAskill has asked U.S. officials to scrutinse the records of Daedong and has written to the U.S. Treasury department about the matter, the newspaper said.

The latest move comes after Anglo-Sino Capital, a firm based in London which is involved in day-to-day management of the Chosun Fund, won regulatory approval from Britain’s Financial Services Authority in May this year.

The Chosun Fund aims initially to raise $50 million, eventually rising to a total asset size of around $100 million, targeting, for example, a possible revival in North Korea’s financial and mining sectors.

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Posted in Banking, Daedong Credit Bank, Economic reform, Finance, Foreign direct investment, Koryo Asia Ltd., USA | Comments Closed

Firms Blast North’s Business Climate

Tuesday, September 5th, 2006

From the Donga:
9/5/2006

“Problems can arise anytime you do business in North Korea since there is no market order. However, when business partners disregard agreed-upon deals, it is impossible to conduct any new business. Someone who betrays others can always betray me. Now, who will be willing to trust North Korea and make new deals with it?”

Upon hearing the news report yesterday that North Korea sold the rights to build a large-scale resort including a golf course within the Gaesong Industrial Complex to South Korean real estate developer Unico, despite the fact that Hyundai Group currently holds the rights, one executive of a large company was assured that North Korea was not a trustworthy investment partner.

“If the South Korean government fails to have a control over ‘lawless’ North Korea, the entire business with North Korea can fall into a crisis,” he worried.

During the Kim Dae-jung administration, Hyundai Group began its North Korean business led by then-chairman Chung Ju-yung. It has invested more than $1 billion in North Korea, including $450 million (about 510 billion won by then exchange rate) illegally transferred to the North as a price for holding the inter-Korean summit in 2000. In the process, the company had to go through a major management crisis and the tragedy of Chairman Chung Mong-hun’s suicide.

At such a great cost, Hyundai earned from the North “seven business rights,” which include the rights to provide electricity, railway, tourism, and a dam. With regards to the 3-phase Gaesong Industrial Complex project, it obtained a certificate with which it is allowed to use the land for 50 years.

Nevertheless, Hyundai is gradually being excluded in North Korean businesses except for the existing Geumgang Mountain tour and the first-phase Gaesong Industrial Complex development. There are even rumors that North Korea is in the final stages of negotiation with Lotte Tours over tourism business in Gaesong and Baekdu Mountain, excluding Hyundai that has the business rights in those areas.

Now that North Korea is found to have sold the rights to use 1.4 million-pyeong of land in Gaesong to Unico at the price of $40 million, there is a greater sense of crisis in Hyundai.

It is needless to say that North Korea bears the largest responsibility for the recent trouble.

However, some point out that the South Korean government has been too lukewarm in its response to the problems with the North, out of fear that inter-Korean relations might suffer. They argue that such an attitude only encourages North Korea’s “derailment.”

“Hyundai Asan’s deal with the North over the second and third phases of the Gaesong Industrial Complex development and Unico’s deal with the North can cause overlaps or conflicts. Thus, the companies will have to negotiate over the matter,” said Goh Gyeong-bin, director-general of the Social and Cultural Exchanges Bureau at the Unification Ministry, yesterday when the news on Unico’s North Korea deal was reported.

“The Ministry of Unification never approved Hyundai Asan of its North Korea business to build a golf course in Gaesong. I believe a double deal is possible here just like it is in the private area,” he added.

This implies that the extraordinary business of inter-Korean economic cooperation is being recognized as an ordinary area of private autonomy where private business partners must resolve problems through self-negotiations.

However, everyone knows that Hyundai’s North Korea business did not start out as a mere private business activity. “The government has drawn no clear line in North Korean business, allowing companies to recklessly engage in such business only to encourage North Korea to develop bad habits,” one executive of an economic organization pointed out.

“In order to effectively manage business deals with unpredictable North Korea, the South Korean government must provide clear trade rules and guidelines. Considering the extraordinary nature of North Korean business, relying on the private sector’s autonomy will only extend uncertainties,” professor Hong Ki-taek of ChungAng University emphasized.

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Posted in Economic reform, Golf, Kaesong Industrial Complex (KIC), Mt. Kumgang Tourist Special Zone, South Korea, Sports, Tourism | Comments Closed

Kaesong golf course under consideration

Tuesday, September 5th, 2006

From the Joong Ang Daily: 

Kaesong golf course under consideration
9/5/2006

North Korea is in talks with a South Korean company other than Hyundai Asan Corp. for a golf course business in Kaesong, the Unification Ministry said yesterday.

Hyundai Asan, a Hyundai Group affiliate, holds an exclusive right to do business in North Korea.

According to the ministry, Unico, a real estate developer based in Daegu, signed an agreement with North Korea’s Asia Pacific Peace Committee to rent two sites near Kaesong Industrial Complex to build golf courses.

Under the contract, the North Korean committee will lease the two sites, one in the southwest and the other in the north, for $40 million over the next five decades.

Along with the golf courses, Unico plans to establish hotels and other entertainment facilities, said the ministry.

However, the same sites are part of the 16,337 acres of land that Hyundai Asan was allowed to use after reaching an accord with the North in 2000. The Korean company is in the middle of building an industrial complex on 816 acres.

Building golf courses on the sites Unico made a deal on was on Hyundai’s agenda for next year.

“The right to run a golf course business there belongs to us, as we forged the contract first,” said a senior executive from Hyundai Asan.

The company began consultations with Unico yesterday over the golf courses in the North, according to the source.

“If Unico comes up with an appropriate business proposal, we can let the company be a business partner,” he added.

A high-ranking manager from Unico said the company pushed ahead with the project as North Korea explained Hyundai Asan has the right to businesses in Kaesong Industrial Complex only.

The Unification Ministry said it would consider approving the golf course business in North Korea only if North Korea, Hyundai Asan and Unico reach a compromise.

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Posted in Asia-Pacific Peace Committee, DPRK organizations, Golf, Kaesong Industrial Complex (KIC), South Korea | 2 Comments »

Radio ownership in DPRK

Tuesday, September 5th, 2006

From Daily NK:
Only Job in the World… North Korea, ‘Person Who Removes Fuses on Radios’
9/5/2006
Ha Tae Kyoung, Open Raido for North Korea

In order to stop the inflow of foreign information entering North Korea, irrespective of how a person obtained a radio, they must report ownership to the People’s Safety Agency (police). This radio is then locked onto North Korea’s official and only broadcasting channel. To fixate the channel the solder is completely removed. So to speak, the only radio station that North Koreans can legitimately listen to is this fixated broadcast.

The majority of the time, this radio station broadcasts songs about the leader and as a result is very boring. Even the TV like the radio is uninteresting as it is fixated on one channel and similarly broadcasts songs about the leader. However, this is not to say that there are many books in North Korea. A defector from Pyongyang once said that there are only 3 bookstores in Pyongyang. Even at these bookstores there are few books and of the few, the books are related to Kim Il Sung propaganda. Furthermore, tapes, movies and drama DVD’s are scarce. No wonder North Korean people find it difficult to spend their leisure times pleasantly.

Recently, the number of people listening to foreign radio programs during their leisure times has increased. Firstly, in order to listen to foreign radio programs the wires fixed onto the radio frequency must be removed. Thus experts are called to open the fuses and as a result, this job is becoming more and more popular. To remove the fuses it costs about North Korean 18,000won. This roughly converts to US$6~7. Taking into consideration that an official North Korean public servant earns about 2~3,000won ($0.67~1) a month, this is a substantial amount.

The reason that the fee is this expensive is not because of high technical skills that are involved in opening the fuses but because of the risk that leads to punishment. Lately in North Korea if a person is caught listening to foreign broadcasts, not only is the radio confiscated but the person is sentenced to 1~3months of forced labor. Compared to the past where people were sent to gulags, the punishment has eased dramatically. One of the reasons that punishment has eased is because of the increasing number of listeners to foreign radio.

Nonetheless the punishment for a person who opens fuses would undoubtedly be significantly greater than a person who listens to the radio. Hence the fee to remove the fuses continues to rise.

When will the day come where North Korea will be able to freely listen to foreign radio programs? Would change come during the time Kim Jong Il is in power? The more desirable condition would be where North Korean people can freely listen to foreign radio programs and the job of removing fuses vanishes. If this case is difficult to achieve in the near future, accordingly it would be better to anticipate North Korean authorities alleviating the punishment on people listening to foreign radio broadcasts. Then, at least the fee of removing fuses would substantially reduce.

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Posted in Domestic publication, Radio | Comments Closed

DPRK selling goods to Chinese trade fair

Monday, September 4th, 2006

From the Daily NK:
NK, A Pitiable Medicine Peddler at aTrade Exhibition
9/4/2006
Kim Young Jin

The Second China Jilin Northeast Asia Investment and Trade Expo commenced on September 2nd in Changchun, Jilin province where North Korea dispatched 100 people from economic and trade groups to set up 36 booths promoting and consulting trade and goods.

North Korea elected Kim Dong Myeong director of Chosun International Exhibition Co. to coordinate the North Korean booths at the trade event, and director in second department of Ministry of Foreign Trade Jeon Hyeong Jeong, vice secretary of Chosun Chamber of Commerce Yoon Young Suk, Chosun Manyeon Health Co. Lee Yong as department representatives. About 100 people were allocated to various booths in addition to 30 Chinese university students who acted as translating helpers.

‘Wooden spatulas’ and ‘Dried ferns?’

The exhibition was divided into categories such as food, cars, electronic goods, petrochemicals, metal goods, construction materials and medical machinery of which North Korea exceeded technicalities and opened 32 booths related to ‘food.’

In the division of construction materials, the Chosun Chongjin Metal Corporation Company had not organized their booth even after people began to enter the exhibition hall much to the embarrassment of sponsors. Clients passed by confused as in the next booth, ‘Inpung Trade Company’ from the Trade Department in Jagang province had set up a display of wooden spatulas, chopsticks and dried ferns totally unrelated to construction.

North Korean booths categorized as ‘foods,’ health and medical products were the focus of retail sale. Each booth stationed 1~2 consultants wearing a dress shirt and pants, 1~2 sales assistants wearing the traditional Korean costume and a Chinese translator sponsored by the event.

Rather than directly advising clients on product queries, the male consultants seem to sit clustered at the back of the booth supervising the female sales assistants and translating helper. As the translating helpers were all Chinese university students and partly inexperienced in English or Korean, it was obvious that they were having difficulty trying to explain product information to foreign clients.

Abundant medical products, chili paste and sesame oil unverified

Excluding Chosun Mansudae Overseas Project Group of Companies of D.P.R.K. (MOP), Chosun Minye Corporation and Chosun Suyangsa Trade Company which sold North Korean paintings, porcelain and handicrafts, the majority of booths sold ‘food’ or ‘medical’ products.

A spokesperson for ‘Tosung Korea Medicine Export Department of Pyongyang Trading Public Corporation’ drew the attention of clients by stating “The ‘Tosung 1 injection’ developed by our company is the leading panacea of this generation. This injection is known to have outstanding effect on various illnesses such as cancer, leukemia, diabetes and tuberculosis.”

In reply to a reporter’s question “If 1,000 injections are ordered, how many days it will take for delivery?” the assistant answered “It is difficult for me to give you a definite answer. However, if equipment is offered for a large-scale order, delivery should be made possible within 3 months.”

Of the North Korean sales assistant met by the reporter, the majority of workers knew only of the cost of products on display and when questioned of large-scale orders, delivery, North Korea’s proof of inspection, ‘clinical effectiveness’ and ‘medical approval’ assistants could not give any definite answers.

However a common scene amongst North Korean booths were appeals to clients “Although economic conditions nor equipment do not yet support mass production, not only has a new medical product has been successfully created but we ensure that the world’s best ingredients, effectiveness and skills are used.”

North Korean assistants asserted by showing ‘An innovative wonder drug’ developed by ‘Chosun Dongbang Drugs Center’ as an impotent drug ‘neo-viagra-Y.R,’ the bird flu antidote ‘Kumdang-2 injection’ by ‘Chosun Pugang Pharmaceutics Company’ and longevity foods ‘Angungwoohwangan’ developed by Korea Myongsung Health Food Pharmaceutical Factory.

According to a speech by a sponsor, various Northeast Asian countries such as South Korea, China, Japan, Mongolia, North Korea and 46 other countries participated in The Second China-Jilin Northeast Asia Investment and Trade Expo. Of 500 corporations in the world, 71 corporations participated in the event and promoted products in 2,200 booths.

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Posted in China, International trade, Ministry of Foreign Trade | Comments Closed

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