Archive for December, 2010

KCNA re-launched on DPRK-owned IP address

Monday, December 6th, 2010

UPDATE 4 (12/6/2010): Martyn Williams informs us that the new KCNA web page has undergone a second round of changes:

Also new is the addition of Korean-language articles to the previously-available English and Spanish news.

The front page includes an image, the day’s headlines and links to seven category menus. I had problems with some of the links and the menus when accessed via Firefox, but they function with Internet Explorer.

It still has to be accessed via an ugly all-numeric address but new is a copyright line that states:

Copyright © 2000-2010 by www.star.edu.kp all rights reserved.

This is the first time I’ve seen the name “www.star.edu.kp.” The Star could refer to “Star JV,” the DPRK-Thai joint venture that runs the North Korean IP address space. That company is planning to use “www.star.net.kp” for it’s own homepage. But the “edu” typically signifies an educational domain.

At present all KP domain names remain offline. The German server that was responsible for serving the dot-kp top-level domain has been offline for several months.

Because this is the second of an unknown number of versions, I will call this “new KCNA v2.”

Below is a screen shot of the original version:

Photo from Martyn Williams

UPDATE 3 (10/21/2010): Martyn Williams reports that the South Korean government is now blocking the new North Korean web pages.

Internet users in South Korea had been able to access the website earlier this week, but as of Thursday attempts to connect are redirected to a National Police Agency page that warns the site’s content is prohibited in South Korea.

The blocking isn’t a surprise. About 30 Web sites with North Korean connections have been blocked for several years by the South Korean government. They include a similar site operated from Tokyo that, like the new site, carries news in English and Spanish from the official Korea Central News Agency (KCNA).

UPDATE 2: More in the comments.

UPDATE 1: You can see the new KCNA here (hat tip to “PR”).

ORIGINAL POST: Martyn Williams writes in Computer World:

North Korea appears to have made its first full connection to the Internet. The connection, planning for which has been going on for at least nine months, came as the reclusive country prepares to mark the 65th anniversary of the founding of the ruling Workers’ Party of Korea with a massive celebration and military parade.

A Web site for the country’s official news agency [KCNA] was the first to appear from among a group of 1,024 Internet addresses that had been reserved for North Korea but never used. The Korea Central News Agency’s new Web site is different from one operated by a group in Tokyo and carries news and photos a day ahead of the Japanese site.

Other North Korea-linked Web sites and a recently launched Twitter feed operate from locations outside the country or via direct connections to China’s national Internet.

The site appeared as Pyongyang welcomed foreign journalists to the city to observe Sunday’s parade. A press room for the journalists was set up at the Koryo Hotel and reporters were given full access to the Internet. Typically visitors to Pyongyang are only able to make telephone calls or send e-mails through designated computers.

“The North Korean IT guys at the press room really know their stuff. We’re logged on,” wrote Melissa Chan, a correspondent for Al Jazeera, in a Twitter message.

She later appeared live on the channel via a Skype link.

“We have access to Facebook, Twitter and here I am able to Skype with you,” she said.

The access is extraordinary for a country that keeps such tight control on how its citizens communicate.

While Internet access is believed to be available to small group of elite members of the ruling party, the rest of the country is not permitted access to outside sources of news.

Radios are pre-tuned to state broadcasts, magazines and newspapers from other countries are banned and the only Web access available is to a nationwide intranet that doesn’t link to sites outside of the country. As PCs are unusual at home, most access is via terminals in libraries.

The first signs of a greater interest in the Internet came late last year when a batch of Internet addresses, long reserved for North Korea, were assigned to a North Korean-Thai joint venture.

The numeric IP addresses lie at the heart of communication on the Internet. Every computer connected to the network needs its own address so that data can be sent and received by the correct servers and computers. Without them, communication would be impossible.

Frequent monitoring of the addresses by IDG News Service repeatedly failed to turn up any use of them until now.

An analysis of the connection to the news agency Web site shows it is connected to the wider Internet via China Netcom.

It’s impossible to tell if the access given to journalists in Pyongyang marks a turning point in the way the country regulates access to communications, or if it’s simply a courtesy made available to create a good impression among journalists.

The founding anniversary of the Workers’ Party of Korea is a big deal for the country every year, but this year is especially important. Kim Jong Eun, son of leader Kim Jong Il, has just taken his first position within the party, which rules North Korea. His appointment to the party’s Central Committee and the Central Military Commission are first steps towards a likely future position as leader of the country.

I have had a hard time locating the new web page (Google has not scraped it), but I will post it here soon.

The KCNA site run by the Chongryon in Japan is here.  The new version also seems to offer both English and Spanish versions.

Read more here:
North Korea opens up Internet for national anniversary
Computer World
Martyn Williams
10/9/2010

…and Martyn’s personal web page: http://www.northkoreatech.org/

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Communist Kim Il-sung’s Manchurian struggle in 1930-40s

Sunday, December 5th, 2010


Pictured above (Google Earth): Pochonbo Revolutionary Site (DPRK)

Andrei Lankov writes in the Korea Times:

On June 5, 1937, the Dong-A Ilbo, then as now one of the leading Korean dailies, recounted an incident that took place in the small township of Pochonbo on the Korean border with China. The newspaper reported that a band of Korean “communist bandits” from China attacked the Japanese police in this city, took it over, burned some Japanese agencies and then withdrew safely.

This was sensational: the years of guerrilla activities in Korea proper were long over, and since the early 1910s the Korean guerrillas only operated overseas. A daring raid of the “communist bandits” (whom many Koreans in those days considered “Korean freedom fighters”) came as a complete surprise. The raid was led by a young commander whose name – Kim Il -sung – thus became widely known across the country.

Kim Il-sung, then still known under his birth name of Kim Sǒng-ju, spent his childhood in China where his family moved in around 1920, fleeing both economic insecurity and political persecution. Kim Il-sung’s father, Kim Hyǒng-jik, a missionary-educated school teacher and herbalist, was a lifelong nationalist sympathizer, even though his political role was subsequently blown out of proportion completely by North Korean propaganda. Kim Il-sung was still a middle school student when he lost his father in 1926, not an unusual fate in the era when the average male life expectancy was less than 30. His mother did not live much longer.

When Kim Il-sung died in 1994, he was clearly a tyrant, in all probability, the worst tyrant in Korean history. Arguably, he and his henchmen killed more Koreans than any foreign invader. Hence, there is a great temptation to see him as evil incarnate. However, history is never that simple.

It is hard to find traces of an emerging tyrant in the Kim Il-sung of the 1920s and 1930s. As we have mentioned above, he was a high school graduate and, back in the Manchuria of 1930, this was a remarkably high level of educational achievement. In those days a high school graduate was roughly as common as a Ph.D. holder is nowadays. His education opened a way to earthly success for the young man, but he chose another path and joined a guerrilla band in the Chinese communist forces.

We’ll probably never know exactly the motivation behind this fateful decision, but one cannot doubt that these reasons must have been lofty and altruistic, based on a mixture of nationalist and communist idealism. There were many people like him, but he was lucky to survive and, later, was unlucky to be sucked ― almost against his own will ― into the brutal world of the violent Cold War politics. In this world he got absolute power, and this power corrupted him (as well many other survivors of the communist guerrilla resistance in Manchuria).

However, in the 1930s those young Korean communists, together with Korean nationalists and, of course, together with the Chinese of all political persuasions challenged the might of Imperial Japan which in 1931 stepped up its aggression against China.

In 1931 Japanese forces invaded and occupied the three north eastern provinces of China. They proclaimed this territory’s “independence” from China and established the puppet state of Manchuguo (literally, “the state of Manchuria”). The last Emperor of the Qing Dynasty, which ruled China from 1644-1911, became the titular monarch of this state, but all control over its activity remained in the hands of the Japanese military – sufficient to say that the commander Japanese forces in the area was by default an “ambassador” to the Manchuguo court and “adviser” to the puppet emperor.

This turn of events outraged everybody. Chinese nationalists could not stand the encroachment of Japan into Chinese lands. Korean nationalists were ready to fight the Japanese everywhere. The communists of both nations were eager to take a stand against the most aggressive imperialist power in the region. In the years 1931-1932, thousands of people of all nationalities and persuasions joined the guerrilla bands that appeared in the mountains in great numbers.

According to official North Korean propaganda, Kim Il -sung headed the Korean People’s Revolutionary Army, which was said to have been created by him, from the beginning. Obviously, this version has nothing to do with reality. North Korean propaganda has always tried to present Kim Il-sung first of all as a national Korean leader and thus downplay his early contacts with China and the Soviet Union. Actually, no Korean People’s Revolutionary Army ever existed. Kim Il-sung was a soldier with the Chinese communist forces.

Around 1935, Kim Sông-ju adopted a nom-de-guerre that would resonate through history: he became Kim Il-sung. The young guerrilla showed himself to be a good, able, and brave soldier, so his career progressed fast. In 1936, the 24-year-old fighter was the commander of the Sixth Division, which included a few hundred fighters and operated in Manchuria near the Korean border. By that time he was probably the best known ethnic Korean commander operating in the area.

At dawn on June 4, 1937, Kim Il-sung led some 150-200 guerrillas to the city of Pochonbo. This small-scale but daring operation was the highest point in Kim’s decade-long career as a guerrilla commander.

In the late 1930s Japanese forces and their local collaborators prevailed, and the guerrilla resistance in Manchuria was gradually wiped out. In late 1940, the few survivors, including Kim Il-sung and his wife, found asylum across the border, in the USSR.

In the summer of 1942, the Soviet command decided to establish a special unit which would include these guerrillas. Most of them were Chinese, but Koreans constituted a significant minority among them. This unit was known as the 88th independent brigade, and its base was located in the village of Viatsk (Viatskoe) near Khabarovsk. This is where Kim Il-sung’s wife gave birth to a son who was given a Russian name, Yura, a vernacular form of Yuri (now he is better known under his Korean name of Kim Jong-il, which was then seldom used).

Korean guerrillas, many of whom had once fought under the command of Kim Il-sung, served in Kim’s first battalion, while three other battalions of the brigade consisted of ethnic Chinese.

It seems as if Kim Il-sung was satisfied with his new position. At least, his superiors had no complaints about him. During their sojourn in Viatsk, Kim Il Sung and his wife Kim Chông-suk had two more children: a son named Shura (short for Alexander) and a daughter. The children’s Russian names might indicate that at the time a return to Korea did not look very plausible for Kim. According to a fellow officer, Kim Il-sung saw his future quite clearly: service in the Red Army, study at a military academy, then the command of a regiment or, with a stroke of luck, even a division. One can easily imagine how Kim Il-sung, an old retired colonel or even major general of the Soviet Army, might have died somewhere in Moscow, while his son Yuri would have worked in some Moscow research centre and, quite possibly, in the late 1980s would have participated with gusto in the pro-democracy rallies…

However, history took another turn. When in 1945 the Soviets drove the Japanese away from northern Korea, they decided to create a pro-Soviet regime in this part of the country. Kim Il-sung, young, charismatic and seemingly loyal to the Soviet interests, but also known in Korea because of his earlier guerrilla exploits, was seen as the best candidate to head such a regime.

This decision started a chain of events which were mostly tragic and sometimes shameful. In order to justify his right to rule, Kim Il-sung had no choice but to remake his Manchurian struggle into a heroic myth of huge proportions. He had to portray himself as the sole leader of the entire resistance movement, and also present this resistance as a force which liberated the country almost single-handedly (the Russians ― let alone Americans ― were edited out of the official history completely).

Clearly, these are lies or, at least, gross exaggerations. However, we should not come to another extreme conclusion and deny any contributions of the Korean communist guerrillas in Manchuria. Yes, the survivors of this struggle eventually played a tragic role in Korean history. But this does not mean that they were not heroes back in the 1930s when they waged their desperate struggle against the mighty enemy. In history, the line between villains and heroes, so obvious and clear-cut in action movies, is far more difficult to draw in real life and real history.

Read the full story here:
Communist Kim Il-sung’s Manchurian struggle in 1930-40s
Korea Times
Andrei Lankov
12/5/2010

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Friday Fun: DPRK Bike Tour

Friday, December 3rd, 2010

Koryo Tours plans to launch the first ever bicycle tour of the the DPRK in September 2011.

According to the Wall Street Journal’s Korea Real Time:

North Korea may not be at the top of most vacation destination planning lists, but it’s relatively easy to visit and safe. A number of tour companies run trips through much of the year, including for the Mass Games during late summer. There are no limitations on US citizens joining tours inside the country.

One of the tour operators, Koryo Tours, has lined up something a little different for 2011: a cycling trip through the country in September.

According to Koryo, this will be the first ever cycling tour around the communist nation. Participants on the trip will be in the saddle for around 4-8 hours a day over the course of a week, pedaling to Nampo on the west coast, through the ancient capital of Kaesong and with an option to head up into the mountains around Mt. Paekdu.

The company is planning to bring in mountain bikes from Beijing for the trip and will carry spare parts in a support vehicle, where the saddle-sore can take a break. All the cycling will be on tarmac roads.

As with all trips to North Korea, the group will be chaperoned by local guides. Hannah Barraclough at Koryo says the guides have been in training for the trip and have been cutting back on smoking in preparation. While there will be limitations on where photographs can be taken, regular stops for picture-taking are planned.

Ms. Barraclough says Koryo is planning to take around 20 people on the trip and initial interest has been good.

At the end of the trip, the company plans to donate the bikes to the local people.

The Koryo Tours web page is here.

Read the full story here:
Tour De Corée du Nord
Wall Street Journal Korea Real Time
Alastair Gale
12/3/2010

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DPRK-PRC trade up 26.7 percent

Friday, December 3rd, 2010

Institute for Far Eastern Studies (IFES)
NK Brief No.10-12-3-2
12/3/2010

North Korean trade with China has jumped 26.7 percent during the first eight months of the year, with the bulk of its imports made up of crude oil, and its largest export being coal. Despite the increasingly severe food shortages in the North, food imports from China were actually down 7.5 percent, while on the other hand, fertilizer imports shot up by 162 percent.

The Korea Trade-Investment Promotion Agency (KOTRA) looked into the Chinese government’s import and export figures and determined that North Korean exports to China during the first eight months of the year were worth 650,000 USD, 20.6% more than during the same period last year, while DPRK imported 1.345 billion USD-worth of goods (30% increase), for trade worth a total of 1.995 billion USD, 26.7 percent more than 2009.

“Mineral fuel and mineral oil” topped the list of North Korean imports (321,000 USD), with crude oil (229,000 USD) and oil (63,000 USD) making up 90.7 percent of imported goods. However, while crude imports were 53 percent more expensive, the amount of oil imported only rose by 2.3 percent; the sharp increase in expenditure was due to climbing international oil prices. The second- and third-largest imports were listed as “nuclear reactor, boiler, and machinery” (127,000 USD) and “electromagnetic machinery, sound and video equipment” (106,000 USD). Other imports included cars and car parts, steel and steel goods, plastic and plastic goods, artificial filament, fertilizer, and grain. A KOTRA official stated that while “nuclear reactor” was listed among the goods imported by the North, there is no way to verify the Chinese statistics.

North Korea’s grain import expenditures increased by five percent, to 34,000 USD, but overall grain imports fell 7.5 percent, to 102,000 tons, due to increased costs. More specifically, rice import expenditures were up 8.4 percent to 16.6 million USD, but the amount of rice imported fell by six percent, to 38,400 tons. Corn expenditures dropped by one percent to 16.3 million USD while the amount imported fell by ten percent, to 62,000 tons. The cost of barley imports grew 190 percent, to 353,000 USD, with the amount of barley brought into the country up 89 percent to 1,011 tons. 277,000 tons of fertilizer were imported, 162 percent more than last year, at a cost of 40 million USD, 85 percent more than 2009. Almost all of the fertilizer was nitrogenous.

North Korea’s exports to China were made up largely of mining and fisheries. Coal topped the list (191,000 USD), although the amount sent across the border was 31 percent less than last year. Iron ore was second, and was not only down by 34 percent, it brought in 134 percent less than 2009, as it was worth only 111 million USD. Textiles and accessories worth 81 million USD, steel worth 64 million USD, and mollusks worth 32 million USD were also sent to China.

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ROK financial transfers to the DPRK

Friday, December 3rd, 2010

According to the Choson Ilbo:

South Korea gave North Korea an astronomical US$2.98 billion during the Kim Dae-jung and Roh Moo-hyun administrations from 1998-2008, according to a government tally announced Thursday. That is 1.5 times more than the amount of aid China gave to North Korea over the same period, which totaled $1.9 billion.

The government and private businesses gave North Korea $1.84 billion through commercial trade, $544.23 million for package tours to the Mt. Kumgang resort, $450 million for an inter-Korean summit, $41.31 million in land use fees and wages for North Korean workers at the Kaesong Industrial Complex and $30.03 million as part of various social and cultural exchanges, according to internal documents of the Unification Ministry and other government agencies.

Funds to Develop Nuclear Weapons

“North Korea is believed to have spent $500-600 million to develop long-range missiles and $800-900 million to develop nuclear weapons,” a South Korean government source said. “And the cash provided by South Korea could have been used to develop them.”

Former government officials during the previous administrations deny this. Lee Jae-joung, a former unification minister, said in a lecture in July last year, “It’s frustrating to hear claims that North Korea conducted nuclear tests using money that the Kim Dae-jung and Roh Moo-hyun administrations gave. So far the government offered cash to North Korea only once.”

He claims that the government was not responsible for paying North Korea $450 million for the first inter-Korean summit in 2000 as that was provided by private businesses together with the cash for the Mt. Kumgang package tours and the Kaesong Industrial Complex.

However, the whereabouts of the cash payment of $400,000 Lee admits to is also uncertain. That was the money North Korea demanded in April 2007 to build a video-link center for the reunions of families separated by the Korean War. North Korea has yet to start construction. “I think they just extorted the money,” a South Korean government official said.

Hungry for Cash

“North Korea demanded money for every event,” said one Unification Ministry official who was in charge of humanitarian cooperation projects during the Roh administration. “We got the feeling that North Korea was trying to use the reunions of families separated by the Korean War as a means to make money.” The North even demanded that South Korea pay $1,000 for each video clip exchanged by families in addition to all of the filming and editing equipment as part of a project back in 2007 that would allow some separated families to stay in touch via video messages, the official said.

A National Assembly audit in 2006 revealed how North Korea made money off South Korean broadcasters. A key example is the W1 billion (US$1=W1,149) that state-run South Korean broadcaster KBS gave North Korea in 2003 to record a TV show about a singing contest in Pyongyang to mark Liberation Day.

In 2005, SBS gave W700 million in cash and W200 million worth of paint and other goods to North Korea for a concert in the North Korean capital by South Korean singer Cho Yong-pil, while in 2002, MBC paid the North W320 million in cash and provided 5,000 TV sets (worth W734 million) for two concerts in Pyongyang by South Korean singers Lee Mi-ja and Yoon Do-hyun.

North Korea also received sizable amounts from South Korean businesses and civic groups through unofficial channels or backroom deals. “Many business owners in the South had problems managing their companies because North Korea habitually made excessive demands for money,” said Cho Bong-hyun, a researcher at the Industrial Bank of Korea’s economic research center

This suggests that a considerable amount of bribes were paid. One South Korean owner of a garment company that was based in Pyongyang said, “Bribes South Korean businesses paid in the early stages to prevent any problems later became customary. After North Korean officials got a taste of the money, they ended up asking for bribes first.”

A Unification Ministry official said, “It’s impossible to estimate how much money was given to North Korea through unofficial channels. We can’t even trace the use of official government money given to North Korea, such as the $400,000 for building a video-link center for the family reunions, so there is no way of telling what happened to money handed over under the table.”

Read the full story here:
S.Korea Paid Astronomical Sums to N.Korea
Choson Ilbo
12/3/2010

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Businesses in Kaesong Industrial Park struggling

Friday, December 3rd, 2010

According to Yonhap:

Once hailed as vanguards of reconciliation but now threatened by simmering animosity between the Koreas, a group of South Korean businessmen pleaded Thursday with senior lawmakers to safeguard their operations in North Korea against further political fallout.

Since North Korea mounted a deadly artillery attack on the South Korean island of Yeonpyeong on Nov. 23, these seasoned businessmen have had jitters over the fate of their factories built in the western North Korean border town of Kaesong.

Considered the last remaining symbol of reconciliation between the divided countries, the joint industrial complex houses more than 120 South Korean firms employing 44,000 North Korean workers.

Holding a commercial fair at the National Assembly, representatives from eight companies and officials from their association mingled with two dozen lawmakers and scrambled to tout their products as bearing the messages of hope and peace.

“We have achieved a level of quality that enables us to compete with any other industrial complexes in the world,” Bae Hae-dong, chief of the association of South Korean factories, said in a speech. “Yet, we remain easily affected by inter-Korean political circumstances. We especially deplore the situation that has arisen since North Korea attacked Yeonpyeong.”

The shelling of the small fishing community killed two marines and two civilians in the most indiscriminate attack on South Korean soil since the 1950-53 Korean War that ended in a truce.

A travel ban imposed on North Korea a day after the attack remains in place, allowing only a limited amount of raw materials to be sent to Kaesong and hamstringing manufacturing operations there.

“We are suffering a 10-15 percent decline in production due to the ban,” said Kim Ssang-kyu, general manager at Pyxis Inc., which produces jewelry cases and other accessories.

Sung Hyun-sang, president of Mansung Corp., which makes women’s clothing, claimed the damage in production amounts to as much as 50 percent.

“We understand the ban is for the sake of our safety, but we’re sure the North Koreans won’t hurt us. They know how important we are” to their cash-strapped economy, Sung said.

“We can only worry and pray for now,” an official at Shinwon, which produces men’s suits, said, asking not to be named because his remark could be taken sensitively.

About 410 South Koreans remained in Kaesong as of Thursday, a drop from 760 on Nov. 23 when the artillery exchange erupted between the Koreas, according to the Unification Ministry in Seoul.

The Kaesong complex produced its first articles — kitchen pans — in 2004 even though the two Koreas had agreed four years earlier on the project in an effort to lessen border tension.

Combining South Korean capital and know-how with the cheap labor in North Korea, the park recently reached a total of US$1 billion in production. Supporters of the estate say its significance goes far beyond economic benefits.

“Kaesong has been a safety pin whenever the security on the Korean Peninsula sagged to a dangerous level,” Kim Choong-whan, a legislator with the ruling conservative Grand National Party (GNP), said in a speech.

Park Joo-sun, who is with the liberal Democratic Party (DP) and sponsored the fair, expressed hope that the park will survive the crisis sparked by the North’s shelling.

The fair was scheduled before the crisis, organizers said. The lawmakers who attended it included Park Jie-won, a DP lawmaker who led the organization of the 2000 summit, and Lee Sang-deuk, President Lee Myung-bak’s older brother who is a GNP legislator.

“Sir, please help us,” Bae told the influential lawmaker touring the booths set up at the fair.

Gently embracing Lee with his arm in a show of friendship, another businessman smiled widely and whispered to Lee, “This is the lifeline of peace.”

In a brief interview on the sidelines, Lee downplayed the economic damage the South Korean firms said they have incurred since the travel ban on North Korea came into effect on Nov. 24.

“They should and can withstand this. It is a risk they were willing to take,” he said as he stepped onto the elevator taking him to his office inside the building.

Vice Unification Minister Um Jong-sik, who admitted in a speech that the companies were suffering drops in production, would not say how long the ban will stay in effect.

“All things and situations must be considered before we can make a decision,” he said after a long pause, when asked if South Korean artillery drills planned for next week in the Yellow Sea would prompt the ministry to extend the ban.

“For now, we’re doing our best to listen to these companies and address their needs as much as we can,” he said as he left the fair with two bags full of clothing he bought from Mansun Corp.

South Korea and the United States ended their four-day joint naval drills mobilizing an American aircraft carrier in the Yellow Sea on Wednesday, a move they believed would intimidate North Korea into calling off further acts of provocation.

The U.S. has 28,500 forces stationed in South Korea, a legacy of the Korean War in which it led U.N. forces to fight against North Korea. Since a U.S. commander drew a line separating the waters of the Koreas at the end of the war, the North has denied its validity, triggering a series of deadly naval clashes there with the South.

North Korea says any further artillery drills by the South on Yeonpyeong, less than 10 kilometers from the North Korean coast, are bound to violate its waters because the Northern Limit Line is null.

The communist state maintains that it fired at Yeonpyeong because it had been provoked by South Korean forces shooting artillery shells at its side across from Yeonpyeong.

Read the full story here:
Businessmen plead for help as tension threatens their factories in N. Korea
Yonhap
Sam Kim
12/2/2010

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Yonpyong satellite imagery

Thursday, December 2nd, 2010

Pictured Above: Satellite imagery of civilian houses damaged by shelling

UPDATE: Google Earth has updated their imagery in this area.

Stratfor Global Intelligence has posted a report featuring Digital Globe satellite imagery of the damage inflicted on Yonpyong Island.  You can download the PDF of this report here.

I have created a Google Earth overlay containing all of this imagery that you can download here (KMZ).  This places all of the pictures used in this report onto Google Earth (where the imagery is not as clear).

DigitalGlobe has also made an image of Yonpyong available for a free download here.

I have been keeping up with Yonpyong-related stories here.

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DPRK bank transfers for nuclear program alarms EU

Thursday, December 2nd, 2010

According to Bloomberg:

North Korea’s use of international banks to facilitate nuclear weapons-related trade requires financial institutions to step up their vigilance, the European Union said.

North Korea exports $100 million in weapons and missiles each year in violation of United Nations sanctions, a UN panel wrote in a report released on Nov. 10. The EU said it’s concerned that some of the country’s trade involves prohibited nuclear technologies.

The 27-nation EU today urged all members of the International Atomic Energy Agency to “exercise particular vigilance over exports and financial transfers” in order “to prevent a contribution to proliferation-sensitive activities.”

Tensions with North Korea have increased in recent weeks. The country has built a new facility for extracting uranium, the key ingredient for nuclear weapons, a U.S. scientist reported on Nov. 20. Three days later, North Korea fired artillery at Yeonpyeong island, killing soldiers and civilians.

North Korea’s new nuclear facilities “could bolster its pursuit of a weapons capability and increases our concerns about prospects for onward proliferation of fissile material and of sensitive technologies to other parties,” U.S. Ambassador Glynn Davies said in a statement at IAEA’s meeting in Vienna.

The U.S. has been pressuring banks to cut ties with the North Korea’s regime, State Department documents posted today on WikiLeaks.org showed.

Reputation

Austria’s Financial Market Authority told the U.S. that it “exercised additional surveillance regarding North Korean financial activities” and that one bank cut ties with the country “to maintain its good reputation,” according to a February 2006 cable.

The U.S. and Japan will hold a week of naval drills beginning tomorrow. The aircraft carrier USS George Washington will join a force of about 400 aircraft and 60 warships. Drills will include responding to ballistic missile attacks on Pacific islands, the Joint Staff of the Japan Self-Defense Forces said in a statement.

“We will not accept North Korea as a nuclear-weapon state,” Davies said. “We seek an immediate halt of all nuclear activities in North Korea, including enrichment.”

Recent posts about the DPRK’s nuclear program can be found here. 

Recent posts on Yonpyong can be found here.

Read the full story here:
North Korean Use of Bank Transfers for Atomic Work Alarms Europe
Bloomberg
Jennifer M. Freedman, Andrew Atkinson
12/2/2010

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Buying into the Hermit Kingdom

Thursday, December 2nd, 2010

A couple of Weeks ago, the Korea Economic Institute released a paper by Kevin Shepard on foreign direct investment and trade with the DPRK.  May of the topics discussed will be familiar to readers of this blog, so I thought I would repost it here.

Buying into the Hermit Kingdom: FDI in the DPRK (PDF)
Korea Economic Institute Academic Paper Series: November 2010, Volume 5, No. 11
Kevin Shepard

Additional Informaiton:
1. Previous KEI academic papers can be found here.

2. North Korea CRS reports.

3. My DPRK Economic Statistics Page

4. My DPRK Business Resources Page (which needs updating)

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Rice price up 40-fold in last year

Thursday, December 2nd, 2010

According ot the Korea Herald:

The price of rice in North Korea has soared nearly 40-fold in the year after the country’s botched currency reform.

Rice is now traded at around 900 North Korean won per kilogram in Pyongyang’s markets, according to online media outlet Daily NK. This is up 3,990 percent from 22 won late November last year in the newly introduced currency.

The North knocked two zeros off the face value of its old currency on Nov. 30 last year, exchanging 100-won bills for new 1-won notes. Therefore the price of a kilogram of rice, which was 2,200 won in the old currency, was redenominated to 22 won.

Under the currency reform plan, a 100-won note in the new currency should have the exchangeable value of a 10,000-won bill in the old currency. However, due to 4,000 percent inflation, the new 100-won note is now only worth 250 won in the old currency.

The price of rice in North Korea is deemed the benchmark of all prices in commercial trade.

“The apparent purpose of the North Korean currency reform was to reduce the amount of money in the markets to stabilize prices, but it failed to achieve this due to an absolute lack of commodity supplies,” said Cho Myung-chul, a senior fellow at the Korea Institute for International Economic Policy.

“The fact that rice prices jumped 4,000 percent based on the currency’s exchangeable value shows that the effect of the 100-fold revaluation has mostly disappeared.”

After major markets in the reclusive state were shut down in mid-January this year, rice prices in Pyongyang soared, hitting 1,300 won per kilo in early March. They dropped to the 400-won range in May as markets began to function again, but soared over the 1,000-won mark in August due to an exchange rate hike and damage caused by heavy rains.

When the North redenominated its currency, it placed a cap on the amount of money that could be converted per person, telling people to deposit the rest in state-run banks.

The measure, which was aimed at crippling the growing merchant class and reasserting control over market activities, tightened the distribution of food and stirred anti-regime sentiment.

This Daily NK story asserts that the average salary of a general worker is around 1,500 won a month, and it is not paid regularly.

Read the full story here:
N.K. rice price soars nearly 40-fold in a year
Korea Herald
Kim So-hyun
11/20/2010

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