Archive for April, 2010

Tax? What Tax? The North Korean Taxation Farce

Monday, April 5th, 2010

Daily NK
Yoo Gwan Hee
4/5/2010

In North Korea, April 1st is commemorated as “Tax Abolition Day.” Ever since the law, “On Completely Abolishing Taxes,” was ratified through the Supreme People’s Assembly on March 21, 1974, North Korea has claimed both within and without to be the only country in the world that does not collect taxes. However, their claim is only for propaganda purposes, for North Koreans labor under a list of state-imposed taxes and duties which grows longer day by day.

Take the example of electricity. Power distribution center members in every city and town visit households in their region alongside the chairperson of the local People’s Unit, whereupon they collect electricity payments according to the number of electric bulbs and electronic equipment therein. This process is done quarterly. In the late 1990s, the quarterly electricity bill per household in Pyongyang was about 20 won. To reduce costs, of course there were people who removed electric bulbs and hid electronic equipment such as irons whenever the power distribution center had workers in their neighborhood.

Since the 2002 economic management reforms were announced on July 1, however, electricity bills have increased greatly. For families living in luxurious apartments in the Jung-district of Pyongyang with televisions, refrigerators and electric fans, households pay as much as 800 or 900 won per quarter.

After the so-called July 1 Reform Measure, troubles between the power distribution center and the people increased. The North Korean people were understandably displeased with the power distribution center, for it was trying to collect money for a utility whose availability was and remains far from regular.

Next, let’s look at reserve food and organizational expenses. North Korea has nine levels of food distribution. From 100g to 900g is supposed to be distributed per day depending on the level, but for the purpose of stocking up reserves, up to 100g is collected from the people instead. Additionally, people are forced to submit approximately two percent of their salary for organizational expenses.

Next, to support for the construction of historical sites. North Korea emphasizes the “voluntary participation” of the North Korean people under the Party apparatus and workers’ organizations. Construction of historical sites for the idolization of Kim Il Sung and Kim Jong Il is frequently organized. Also, officials often collect money from people in order to support those construction projects of which the cabinet is in charge.

Then there is free education. It is officially called “free education,” but school administration expenses are all covered by students and parents. Students have to collect waste paper, waste iron and waste rubber, or raise rabbits and submit the pelts to school. After 2000, there have even been students engaging in business around markets in order to provide supplies for submission to the school.

Onwards, then, to market stands rental fees. After the July 1 Reform Measure, the amount of tax collected at markets suddenly increased. Market stand rental fees already existed before the July 1 Reform Measure but, after 2002, market management centers started collecting market management tax as well, basing it on each product sold. Noodle sellers paid ten won per day, while soybean curd sellers paid three won.

Market stand rental fees became more systematic as well after general markets opened in late 2003. According to the product being sold and daily sales figures, market management centers charged rental fees. In present-day Nammun Market, Hoiryeong, the stand rental fee is said to have been fixed at 100 won per month.

Separate from the stand rental fee, monthly tax is charged on products for sale in the markets. For example, Nammun merchants pay additional taxes of 300 won for industrial goods, 180 won for pork, 150 for cigarettes, alcoholic drinks and fish, 120 won for food and 100 won for general merchandise.

So, while the North Korean media deliver their diet of propaganda promoting North Korea as the world’s only taxless country, be wise to the reality of the North Korean people suffering under an increasing tax burden.

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DPRK official reaffirms intention to close markets

Sunday, April 4th, 2010

Ugh…I really don’t know what to say at this point.  Depressing.

According to the Associated Press (via Forbes):

“In the early days immediately after the currency change, market prices were not fixed, so markets were closed for some days,” Ri Ki Song, a professor at the Institute of Economy at North Korea’s Academy of Social Sciences, told APTN. “But now all markets are open, and people are buying daily necessities in the markets.”

Ri was provided by the North’s government in response to a request to talk to an official who could explain its economic situation. It is very rare for North Korean officials to discuss such policies with foreign media.

Impoverished yet nuclear-armed North Korea has in recent years allowed some free markets for food and consumer items, while others not sanctioned by the state have also sprung up as the public copes with declining living standards and food shortages.

“Outside Korea, many people have been talking loudly about problems that occurred during the change of currency in our country, but there wasn’t any of the social disorder that they have been talking about,” Ri said. “Now the situation is being stabilized overall, and the economy is functioning well, thanks to some of the measures that have been taken.”

Ri insisted the government’s objective is to phase out markets completely and rely on a state-controlled network of outlets to supply its citizens.

Read the full article here.

There is no shortage of posts on the DPRK government’s growing antagonism towards markets in the last several years

The Heritage Foundation reminds us all that the DPRK has languished at the bottom of the international Index of Economic Freedom for years and asks, “how low can you go?”

The Daily NK tells us that times are pretty tough for many in the DPRK right now:

A source from North Hamkyung Province confirmed as much yesterday in a telephone interview with The Daily NK, saying, “Lower class people, who live from hand to mouth through the markets, have been suffering from the most serious difficulties since the redenomination.”

This is because for around two months the markets were shut down completely, and even after the markets reopened market price ceilings were adopted, so small traders and those who lived by relying on the markets were among those hit hardest, according to the source.

“Those running street-stands, alley market traders, porters and others who live by clinging to the markets mostly lost their money in the redenomination. Although markets have started to get animated again, these people are still facing difficulties due to a lack of seed money.”

The source added, “The food situation is actually dire. Despite the authorities’ program of releasing relief rice to poor households, in reality real distribution for them is not that helpful.” This is because any such state relief program is temporary, and cannot address the poorer classes’ fundamental problems.

He emphasized, “Now, people have started worrying about spring poverty, which comes every year in around May or June. In Onsung, Hoiryeong and Musan in North Hamkyung Province, the rice price has dropped to around 400 won per kilogram, but there are still so many people who cannot even afford to eat corn.”

The source gave the example of one of his acquaintances, whom he called Mr. Lee. He used to live by trading secondhand products in Musan.

Pre-redenomination, Mr. Lee managed around 200,000~300,000 won (in old value) of assets, dealing parts and used bicycle tires with his wife. However, following the currency redenomination of November 30, 2009, he was left with 1,900 won of new currency.

To make matters worse, he had only 100 kilograms of corn, which he had obtained in October. His family has been eking out that corn over the last few months.

Since February, the Musan Market resumed operations, but since prices have been unstable, not many people have wanted to buy. Recently Mr. Lee was forced to sell his one-room house to realize some capital.

As the source concluded, “The most terrible victims of the currency redenomination, market closures and inflation are lower class people in the cities. Nowadays, city residents feel lucky when they have just coarse corn.”

“In May or June, when the spring poverty period begins, the situation of the urban poor class will become even more terrible.”

Here is a satellite image of the Musan Market.

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Pramod Mittal eyes stake in DPRK mines

Sunday, April 4th, 2010

According to the Economic Times of India:

Pramod Mittal, the younger sibling of steel tycoon LN Mittal and head of Global Steel Holdings, is negotiating with the North Korean government for a stake in the country’s Musan Iron Ore mines, estimated to hold reserves of more than seven billion tonnes. The move by Global Steel is aimed more at accessing the mineral resource, as the ore is in sharp demand with steelmakers expanding capacity and iron ore miners moving to a quarterly price regime to meet growing markets in Asia and Africa.

Mr Mittal, who is chairman of Global Steel, a closely-held company of the Mohan Lal Mittal family, had visited Pyongyang last week to talk to senior government officials to work out the modalities of a share of Musan’s reserves. The ML Mittal family consists of elder son LN Mittal, Pramod Mittal and younger brother Vinod Mittal, who looks after the Mumbai-based Ispat Industries. When contacted, Pramod Mittal declined to comment. “Our visit to North Korea is to further business interests. We are not looking for any stake in Musan,” he told ET .

According to people familiar with the development, Global Steel could likely be negotiating with Pyongyang for development rights to Musan for a fixed peiod, where Global Steel would do the mining and get to buy an agreed portion of the reserves. Typically, in the mining industry, such development rights are for a long term period of 20 to 50 years.

Global Steel, which is registered in the tax haven Isle of Man, has steelmaking operations in Bulgaria and Nigeria and a 20-year management contract to operate Zimbabwe Iron & Steel. Although Global Steel has a small steelmaking capacity of just more than 2 million tonnes, iron ore from Musan would not be used for Global Steel’s operations. Global Steel also owns two coal blocks in Mozambique where ArcelorMittal, controlled by elder brother LN Mittal, also has coal mines. While the Mittal family has maintained that Global Steel has no link to ArcelorMittal, the world’s largest steel company has been reportedly keen on Global Steel’s assets.

Two years ago, North Korea had granted development rights on Musan to China’s Tonghua Iron & Steel Group for a period of 50 years. However, Pyongyang recently terminated that agreement without offering any reason. People connected with the issue said Global Steel is negotiating with Musan on the amount of investment needed for developing the mines and also on building infrastructure, which is integral to any mining activity.

While the talks with Pyongyang is at an initial stage, under the previous agreement with Tonghua, the Chinese company had reportedly agreed to put in about 7 billion yuan, and had also planned to produce 10 million tonnes of iron ore each year. Of the total investment, about $240 million was for building roads and railways from Musan to Tonghua in China. The Musan iron ore mines are close to the Chinese border. The secretive North Korean government has recently been sending out feelers to global mining companies for developing its vast mineral deposits, said to contain one of the world’s largest reserves, closely rivalling Brazil.

The Musan Mine is the DPRK’s largest and satellite imagery of it can be seen here.

Here is a story about Tonghua’s Musan deal

Read the full story here:
Pramod Mittal eyes stake in North Korea’s Musan mines
The Economic Times
MV Ramsurya
4/5/2010

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Jin Hualin, Yanbian University, on Chinese investment in DPRK.

Sunday, April 4th, 2010

Jin Hualin, dean of the College of Economics and Management at Yanbian University, talks about Chinese investment in Rason in China’s Global Times.  Here is an excerpt:

GT: If China does continue to rent Rajin harbor for another 10 years, what will the effects be?

Jin: China has reached an agreement to rent a pier at Rajin Port for another decade. A Dalian-based Chinese company has invested 26 million yuan ($3.8 million) in the reconstruction of Rajin Port No.1 Pier. Park also said that China may enjoy more favorable conditions there, such as more berths.

I think Chinese companies’ participation is good for promoting the North Korean economy and building logistical infrastructure in the area, which is beneficial to China, North Korea and the Northeast Asian countries.

When the Sino-Mongolia route is finished, raw materials and natural resources from Mongolia can be shipped to Japan and South Korea via Rajin harbor, and then China’s northeastern regions and North Korea can both benefit.

GT: What should China do to promote Northeast Asian cooperation and devel-opment?

Jin: I suggest Chinese governments at all levels consider the following issues. They should accelerate trade and tourism and build cooperation on logistics, and support Chinese companies going global and investing in North Korea.

Actually, China now has many companies capable of investing abroad. The point is foreign countries’ investment environment.

We should strengthen cooperation on education with North Korean universities and colleges, sending students to study there and exploring research in new areas together.

We can also strengthen regional cooperation. We can designate China’s Hunchun city and North Korea’s Rason city as pilot cities and permit China’s commercial banks to open yuan-based accounts in Rason’s commercial banks.

Relations between Northeast Asian countries are subtle and complicated because of geopolitical contradictions, different political systems, the influence of the Cold War, historical issues, territorial disputes and sentiments caused by historical and territorial issues.

Mutual distrust fundamentally hinders cooperation. China needs to take the responsibility to promote regional cooperation and make it institutionalized and legally guaranteed as soon as possible.

GT: How do you evaluate the political and economic risks for Chinese companies going into North Korea? What advantages do Chinese companies have?

Jin: There are always political and economic risks involved in trade between different countries. The first major solution is to establish a mutual investment guarantee agreement, so that the two countries’ economic cooperation will be protected legally.

We hope that North Korea can keep the stability and consistency of its policies and issue development policies that is in line with international conventions. As long as North Korea adopts consistent policies, Chinese companies won’t encounter great political and economic risks there.

China and North Korea are believed to enjoy good mutual trust. China has experience from its reform and opening-up and plenty of investment capability. North Korea has a good educational foundation, low labor costs, and rich natural resources.

Chinese companies are active participants in investing in North Korea and I believe they’ll do well there.

Read the full interview here. Hat tip to Adam.

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NOKO Jeans update

Sunday, April 4th, 2010

The guys at NOKO Jeans did an interview discussing the process of launching a business venture in the DPRK.  Read the interview here.

The group also posted some very nice pictures of their train ride to Pyongayng here.  The whole set is worth checking out, but here is one that I liked:

py-noko-jeans.jpg

And who says entrepreneurship is dead in Europe?  One of the guys on the team put his images into a photo album which he is selling on line here.

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Monument to the African Renaissance Unveiled

Sunday, April 4th, 2010

Click image for larger version

UPDATE 6:  According to KCNA:

Kim Yong Nam Attends Unveiling Ceremony

Pyongyang, April 4 (KCNA) — Kim Yong Nam, president of the Presidium of the DPRK Supreme People’s Assembly on an official goodwill visit to Senegal, participated in the ceremony for unveiling the “Monument to Revival of Africa” on Saturday.

The monument represents in a formative artistic way the strong stamina and will of the African people to bring about their bright future by their own efforts while aspiring after independence and building of a new society. It has been successfully built in a short span of time with help of Korean technicians.

Present at the ceremony were Senegalese President Abdoulaye Wade and heads of state and government from at least 20 African countries, representatives of different international and regional organizations, diplomatic envoys of different countries in Dakar and thousands of its citizens.

Incumbent and former presidents of African countries and representatives of international and regional organizations said at the ceremony that this wonderfully-built monument is pride of not only Senegal but also Africa.

They expressed belief that the African people would make greater progress with the conviction of the future.

UPDATE 5: Senegal unveils £17m African Renaissance statue built by North Korea’s Mansudae Overseas Investment Group.  According to the Gaurdian:

Senegal’s vast African Renaissance monument was unveiled yesterday amid criticism that the 49-metre bronze statue is a presidential vanity project and waste of money.

The representation of a man, woman and child emerging from a volcano was inaugurated at a ceremony featuring hundreds of drummers and dancers.

The statue, which cost £17m and is taller than the Statue of Liberty, stands on a hill overlooking the capital, Dakar. It marks Senegal’s 50 years of independence, and the president, Abdoulaye Wade has said he hopes it will become a tourist attraction.

Wade, 83, who is expected to seek another term in office at elections in 2012, said the monument commemorated the entire continent. “It brings to life our common destiny,” Reuters reported him saying at the launch ceremony. “Africa has arrived in the 21st century standing tall and more ready than ever to take its destiny into its hands.”

Wade has faced criticism for spending so much money on the structure when Dakar residents living in its shadow endure regular power blackouts and flooding. He has angered both Senegal’s Christian minority and some within the Muslim majority population.

Wade apologised to the former group after likening the monument to Christ, while some imams have condemned the Soviet realist-style statue as idolatrous. Other have expressed concern at the thigh-length hemline skirt worn by the female figure.

UPDATE 4: According to Access Asia’s Weekly Website Update – 1st April 2010:

Senegal may not have much to attract tourists, but it does now have something most other potential holiday destinations don’t – a 50 metre high bronze monument crafted by North Koreans. It’s a quick bit of profit for Pyongyang. Hopelessly corrupt and slightly potty Senegalese president Abdoulaye Wade wanted a tall bronze statue – and what he wants, he gets. Actually it’s taller than the Statue of Liberty in the very-difficult-to-get-a-visa-in-these-days United States of America. Called “African Renaissance” it stands on a hill near Dakar International Airport and represents a heroic couple apparently about to launch their child into the sky, for some reason unspecified.

President Wade couldn’t afford the statue so he called in Pyongyang as specialists in providing oversized tat. They did, in return for a prime chunk of real estate in exchange. Pyongyang has since sold the land on, making a tasty profit. Senegal, still mired in poverty, now has Africa’s daftest statue and some dodgy property developers in charge of a chunk of their land – fair swap?

UPDATE 3: Great photos here (h/t Marmot)

UPDATE 2: The Wall Street Journal fills in some more details on the Monument:

This month, workers from Mansudae Overseas Project Group of Companies, a North Korean design firm, were putting the finishing touches on a giant copper sculpture of a family. Senegal President Abdoulaye Wade will inaugurate the African Renaissance Monument in April to mark the 50th anniversary of the country’s independence from France, a ceremony he expects the president of North Korea’s Parliament to attend.

“Only the North Koreans could build my statue,” says Mr. Wade, sitting in a red velvet chair in his palace. Moreover, they offer monuments at a good rate, he says: “I had no money.”

North Korea is mainly known for a totalitarian regime overseeing economic failure. But it has also produced a successful export business—building monuments to freedom and independence. The statues’ selling point: They are big, simple and cheap.

Over the past decade, Mansudae has built dozens of statues and monuments for cash-strapped African countries. Botswana cut the ribbon on a memorial to three tribal chiefs in 2005. Neighboring Namibia boasts a bronze of its founding president wielding an AK-47.

The African Renaissance is Mansudae’s biggest work yet, measuring 164 feet high and crowning two barren hills in Dakar called “Les Mamelles” at the westernmost point of Africa. That makes it taller than either the Statue of Liberty (151 feet) or Rio de Janeiro’s Christ the Redeemer (100 feet). The statue depicts a father holding a baby in his left arm. The man’s right arm is around the waist of the baby’s mother. The three are reaching out to the sky and out to the ocean.

“Its message is about Africa emerging from the darkness, from five centuries of slavery and two centuries of colonialism,” says Mr. Wade.

Africa’s rash of nationalistic monuments, statues and shrines has made Mansudae’s signature aesthetic of socialist realism fashionable. In Benin, for example, a statue of a 19th-century king holds his hand up, symbolically forbidding the French to enter.

Socialist realism is popular “because people can access it easily,” says Mary Jo Arnoldi, curator for African Ethnology at the Smithsonian Institution. It is easy to understand for illiterate populations, she says. “But aesthetically, it’s not going to win any prizes.”

In Senegal, however, the statue has been a beacon of discontent, sparking angry newspaper editorials and protests from religious leaders. The statue’s sultry mother figure, dressed in a wisp of fabric that reveals part of a breast and a bare leg, has offended imams in this majority-Muslim country.

Financing details for the project have been murky, and some taxpayers are outraged by the very idea of it when power outages occur daily and university students strike over rising fees. Mr. Wade had no budget for the African Renaissance, so instead offered a prime chunk of state-owned land in exchange, which North Korea has since resold at a large profit, he says.

However, a panel near the base of the monument lists the official budget as $25 million, though foreign government officials estimate its cost at around $70 million. Mr. Wade says he plans to keep 34% of the profit from entrance fees and merchandise for a personal foundation.

The North Korean role is of less concern, though labor unions do lament that Mansudae got the job when an estimated 49% of the population is unemployed: 150 North Koreans are building the statue, helped by just 50 Senegalese. Mamadou Diouf, the head of the Confederation of Autonomous Unions of Senegal, says the project doesn’t look African.

“If [building the statue] was a priority for our country, it could have been done by Senegalese workers in a manner much more in line with our values,” he says.

A short video related to this story can be seen here.

The monument’s location is here.

UPDATE 1: The Guradian brings us up to date with the monument’s construction:

monument-of-the-african-r-001.jpg

According to the Guardian:

The statue shows a muscular man in a heroic posture, outstretched arms wrapped around his wife and child. Nearly 50 North Korean workers were brought in to build it, because of their expertise with bronze art, and some Senegalese have complained of its communist-era design. It has also drawn criticism from Muslims, who make up 94% of Senegal’s population, because of Islamic prohibitions on representations of the human form.

Abdoulaye Wade, Senegal’s octogenarian president, has compared the work to some of the west’s best-known landmarks, and some Senegalese do regard it as a symbol of pride that has economic spin-offs.

Alassane Cisse, a Senegalese delegate at the world summit on arts and culture in Johannesburg, South Africa, said: “All cities need signatures, but in Dakar we have had only monuments which existed during colonisation. Africa needs its own great monuments like the Eiffel tower and the Statue of Liberty. This symbol of African renaissance will motivate people to rehabilitate and work with Africa.”

He added that the site has exhibition, multimedia and conference rooms, as well as a top-floor viewing platform giving a bird’s eye view of Dakar. “It will be a cultural place. Around the monument there will be a theatre and shops. Many tourists will visit there, so the economic effects will benefit the population.”

But the president has sparked anger by maintaining that he is entitled to 35% of any tourist revenues it generates, because he owns the “intellectual rights”.

Critics say the £17m could have been used for more pressing concerns. Djiby Diakhate, a sociologist at Dakar’s Cheikh Anta Diop university, told the Associated Press: “Senegal is going through a profound crisis. Our economy is dying. People are struggling to eat. We should be spending money helping people survive.”

ORIGINAL POST: As some readers may be aware, I have been tracking down monuments and buildings constructed by North Korea’s Mansude Overseas Project Group.  To date, I have tracked down quite a few (see North Korea Uncovered for the full list).

One such find is the “Monument to the African Renaissance” in Dakar, Senegal.  See this Voice of America story for background.  Well, a friend of mine recently visited Dakar and snapped this photo of the monument’s construction:

african-renaissance.JPG

Click on image for larger version

I believe we can see a leg on the lower left.  The majority of the construction so far seems to be support.

Note to readers: if you are aware of any other North Korean-built (or operated) buildings/monuments/businesses/restaurants in your country, please let me know. I do not believe a comprehensive list of these projects exists, so getting this information together now will certainly be valuable to future historians. How is that for motivation?

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DPRK-PRC plan two more Yalu River dams

Sunday, April 4th, 2010

UPDATE: According to Michael Rank:

Two power stations are under construction on the Yalu river between China and North Korea, a Chinese website reports.

They are both small plants with an installed capacity of 40,000 kilowatts and both are situated near the border town of Ji’an 集安 in southwestern Jilin province, near the border with Liaoning.

The dams are set to be finished in 2013. Negotiations concerning construction have been protracted: a preliminary agreement was reached in July 2004, followed by a further agreement in August 2008 and a final accord last January.

The Wangjianglou or Lintu 望江楼(林土)dam will be based on the Chinese side of the river with investment totalling 600 million yuan ($88 million), while the Wenyue or Changchuan 文岳(长川)dam will be based on the North Korean side with investment put at $500 million ($73 million). The report did not say how power, or costs, would be shared between the two countries.

A ceremony marking the beginning of construction was held on March 31, attended by North Korean vice-minister of electricity industry Kim Man-su and Jilin vice-governor Chen Weigen.

The plants will each produce 154 million kilowatt-hours per year. The Wangjianglou dam is 397 metres long and 16 metres high, while Wenyue is 602.7 metres long and 15.5 metres high. They are 36 and 24 km from Ji’an, respectively and are 1.5 and 5.5 km from North Korean railway stations (Rinto린토 and Mun’ak 문악 – these are the Korean names of the dams).

These dams are very small scale compared with the world’s largest dams, which run into thousands of megawatts (440 kW is just 0.44 MW).

ORIGINAL POST: According to the AFP:

China and North Korea will build two hydro-electric dams on the Yalu River that marks their border, Chinese state media reported on Thursday.

The dams will cost a total of 1.1 billion yuan (161 million dollars) and generate a combined 308 million kilowatt hours of electricity when completed, China Central Television reported.

The announcement came amid reports that North Korean leader Kim Jong-Il would soon visit China in a trip that could revive talks on ending Pyongyang’s nuclear drive.

Xinhua news agency said one dam would be built at Wangjianglou in China’s northeastern Jilin province and the other at Changchuan.

Electricity from the dams would help “drive economic growth in Jilin and North Korea,” it added.

It was not immediately clear how the two sides would share the cost of the projects or the electricity.

Construction would begin this year.

North Korea, desperately poor after decades of isolation and Stalinist economic policies, is heavily dependent on China for trade and aid.

South Korea’s government said this week there was a “high level of possibility” that Kim would pay a visit to China, the reclusive regime’s closest ally.

The South’s Yonhap news agency cited diplomatic sources saying he might leave for China as early as Thursday or Friday.

China’s foreign ministry declined to confirm the reports.

After an October visit to Pyongyang by Chinese Premier Wen Jiabao, Kim said his nation would rejoin the six-nation denuclearisation talks which the North stormed out of in April of last year.

The talks group hosts China, the two Koreas, Japan, the United States, and Russia.

Adam Cathcart offers a translation of the Xinhua dispatch:

中朝两国在鸭绿江新合建的两座水电站开工   // China and North Korea to Begin Construction on Two New Shared Hydroelectric Plants

Huanqiu Shibao, April 2, 2010 [translated by Adam Cathcart]

新华网吉林频道3月31日电(记者李双溪)31日, 中国与朝鲜在界河鸭绿江上共同建设的两座水电站开工。这两座电站总投资为11亿元人民币 ,建成后年发电量达3.08亿千瓦时。其中,望江楼(朝鲜称林土)电站计划投资6亿元,发电厂位于中方一侧,电站主要由混凝土重力坝、泄水闸、电站厂房及变电站等部分组成。On Jilin’s newschannel on 31 March, Xinhua’s reporter Li Shuangxi broadcast that China and North Korea would start joint construction on two hydropower plants in the border areas of the Yalu River. Investment on these two power plants will total 1.1 billion yuan, and the year after completion, they are projected to have a power generation capacity of 308 million kilowatts.  Among these plants are the Wangjiang Station (called Lintu by the Koreans), which is slated for 6oo million RMB of investment.   The power plant on the Chinese side will be a concrete gravity dam with a sluice gate and substation components.

[Lots of details follow on dam dimensions, projected electric output…It seems clear that China will bear all of the cost, though.]
2004年7月中朝双方审查通过了两座电站的初步设计,2006年中国有关部门批准了建设方案。2010年1月,双方在朝鲜签署了《中朝建设鸭绿江望江楼和文岳电站第九次会议纪要》,一致同意两电站开工建设。 In July 2004, China and the DPRK jointly reviewed the preliminary design of the two power stations.   In 2006, the Chinese authorities approved the construction plan.  In  January 2010, the two sides signed an agreement in North Korea known as the “Minutes of the Ninth Meeting on Sino-North Korean Construction of Yalu River Dams at Wangjianglou and Wenbing,” in which it was agreed to commence with the construction of the two power stations.

发源于长白山主峰、总长约795公里鸭绿江水能资源丰富,流经过吉林省和辽宁省。 目前在吉林省境内中朝双方已建有云峰、渭源两座水电站。 望江楼、文岳电站将成为双方共同受益的水电站,对开发鸭绿江、拉动吉林省和朝鲜的经济增长将起到积极的促进作用。Originating in the main peak of the Changbai Mountain range, with a total length of 795 km, the Yalu River is a rich resource flowing through Jilin and Liaoning provinces.  Currently, on the borders of Jilin Province, China and the DPRK have already built two jointly benefitted-from hydropower plants called Yunfeng and Weiyuan.  The Wangjianglou and Wenbing power stations will be built for of mutual benefit, developing the Yalu River, driving forward continued economic development between Jilin province and North Korea, playing a positive role.

I am not sure where these dams are going just yet.  The DPRK and China already share 4 dams across the Yalu. Here are satellite images of them (Dam 1, Dam 2, Dam 3, Dam 4).  Unfortunately I do not know the names of most of them, but Dam 2 is now known as the Suphung Dam.  It used to be called the Suiho Dam and it was bombed during the Korean war:

Read the full story here:
China, N.Korea plan Yalu hydropower dams: reports
AFP
4/1/2010

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RoK goods popular with DPRK women

Sunday, April 4th, 2010

According to the Choson Ilbo:

South Korean goods remain popular among well-to-do North Koreans, especially women, Open Radio for North Korea station reported on March 25.

The defector-run radio station said one North Korean official bought South Korean goods including a robot vacuum cleaner, air conditioner, heater, underwear, and cosmetic goods worth US$3,000 in December last year. He was quoted as saying his wife asked him to buy them and was very happy with them, so her circle of friends asked him to buy the same things for them.

South Korean goods are apparently no longer confiscated in customs. The official said customs officers do not mind as long as the goods are for personal use and not for sale. Control by Chinese customs is stricter than in North Korea.

It said South Korean robot vacuum cleaners are thought to be cheaper than Japanese ones, and the batteries last longer. South Korean underwear and cosmetic goods suit North Koreans better than those imported from other countries.

Read the full story here:
Rich N.Korean Women Lead Craze for S.Korean Goods
Choson Ilbo
4/3/2010

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DPRK IT update

Sunday, April 4th, 2010

According to the Korea IT Times:

The number of science and technology institutions in North Korea is estimated to hover around 300; about 200 institutions have been officially confirmed. Therefore, the North is unable to focus on building the hardware industry, which requires massive capital input and long-term investment, and is left with no choice, but to be keen on nurturing IT talent geared toward software development. As a result, the North has been producing excellent IT human resources in areas like artificial intelligence, needed for controlling man-made satellites and developing arms systems, and programming languages.

The following IT institutions are in charge of fostering the North’s software industry: DPRK Academy of Sciences, Korea Computer Center (KCC), Pyongyang Information Center (PIC) and Silver Star, which is currently under the KCC.

In particular, the creation of the PIC, modeled on the Osaka Information Center (OIC) at Osaka University of economics and law, was funded by Jochongnyeon, the pro-North Korean residents’ league in Japan, and was technologically supported by the UNDP. The Jochongnyeon-financed KCC has been responsible for program development and distribution; research on electronic data processing; and nurturing IT talent.

Thanks to such efforts, nearly 200,000 IT talents were fostered and about 10,000 IT professionals are currently working in the field. Approximately 100 universities such as Kim Il-sung University, Pyongyang University of Computer Technology and Kim Chaek University of Technology (KUT) – and 120 colleges have produced 10,000 IT human resources every year. At the moment, the number of IT companies in the North is a mere 250, while the South has suffered from a surplus of IT talent. Therefore, inter-Korean IT cooperation is of great importance to the two Koreas.

As aforementioned, the North has set its sights on promoting its software industry, which is less capital-intensive compared to the hardware industry. Above all, the North is getting closer to obtaining world-class technologies in areas such as voice, fingerprint recognition, cryptography, animation, computer-aided design (CAD) and virtual reality. However, the North’s lack of efficient software development processes and organized engineering systems remains a large obstacle to executing projects aimed at developing demand technology that the S. Korean industry wants. What is more, as the North lacks experiences in carrying out large-scale projects, doing documentation work in the process of development, and smoothing out technology transfer, much needs to be done to measure up to S. Korean companies’ expectations.

Thus, the North needs to build a system for practical on-the-job IT training that produces IT talent capable of developing demand technology- which S. Korean companies need. In addition, it is urgent for both Koreas to come up with an IT talent certification system that certifies both Koreas’ IT professionals.

Read the full story here:
North Korea Needs to Set Up Practical IT Training and Certification Systems
Korea IT Times
Choi Sung
4/2/2010

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Friday Fun: Brigandish drinking game, KFA, and Pyongyang construction mayhem

Friday, April 2nd, 2010

Brigandish Drinking Game
Josh Stanton (One Free Korea) gets credit for inventing the KCNA drinking game.  Every time KCNA mentions “Brandish” behavior, you take a drink.  For those who like to imbibe more frequently, here is a link to every single KCNA story that mentions “Briganish”–all 647 of them. This is courtesy of the indispensable STALIN search engine.

KFA in London
Korean Friendship Association hosted what can only be described as a “hysterical” protest against the US and South Korean embassies in London.  The reasons: Foal Eagle and Key Resolve.  It appears that about half-a-dozen members showed up. See all of their photos here.

Pyongyang Construction Mayhem
The North Koreans are constructing a Pyongyang Folk Village at the foot of Mt. Taesong next to Anhak Palace (satellite image of the construction site here). Below are some images of the construction taken from the Dec 11, 2009 KCTV evening news.

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Above are the replicas of the Pongyang ice skating ring and (I believe) Sosan district tae-kwon-do building.

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Above are replicas of the Monument to the Founding of the Worker’s Party, the West Sea Barrage, and the Grand People’s Study House.

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Above is the replica of the Ryugyong Hotel.  This will likely be the first replica to be completed before the original on which it is based!

No doubt the replica of the Pyongyang Arch of Triumph will also be the worlds largest replica of a triumphal arch as well–over 3 meters taller than the model of the Paris Arch of Triumph at Lego Land!

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