Archive for the ‘South Korea’ Category

Seoul to begin Kaesong road repair

Thursday, November 3rd, 2011

According to Yonhap:

South Korea will next week start repairing a road used by North Korean commuters to reach an inter-Korean industrial complex in the North, an official said Thursday amid signs of a thaw in bilateral relations.

The 4.5-kilometer road linking North Korea’s border city of Kaesong to the nearby industrial park is used by more than 47,000 North Korean workers who are employed by some 120 South Korean firms operating in the zone. South Korean officials earlier said the road was damaged in summer’s torrential rains, prompting the South to conduct an on-site survey.

“After signing an agreement (with the North), we expect to start repair work next week,” said an official at the Unification Ministry, which handles inter-Korean relations in the South.

“It will likely take about three months to complete the work, unless the weather becomes too cold, and cost us around 1.8 billion won (US$1.59 million),” the official said, speaking on condition of anonymity.

The repairs will involve restoring damaged paved sections and filling in holes on unpaved sections. Repairing the road is expected to save time for North Korean commuters and reduce traffic accidents.

The Daily NK offers some additonal information:

A government official explained today that the decision was made pursuant to agreement between the Kaesong Industrial Complex Management Committee, LH Construction and the North Korean authorities.

“The agreement has not yet been signed, but we are hoping to start the construction at the beginning of next week,” the official explained.

“Our side has taken on responsibility for planning the road repairs and supervising the construction,” he went on. “The weather could change things, but the construction should require three months and is expected to cost 1.8 billion South Korean won.”

Aside from the aforementioned construction, there are also plans to reconstruct two turning points for buses serving the complex. The human resources for the construction will be provided by North Korea.

There are plans to extend bus service to cover the areas of Pongchon (봉천), Kumchon (금천), and Phyongsan (평산). However, the roads to these areas are unpaved and extension of transportation services to these areas will require negotiations with the North Korean authorities.

Read the full story here:
Seoul to start repairing road leading to Kaesong complex next week
Yonhap
2011-11-3

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Official Data Shed New Light on Pyongyang Population

Saturday, October 22nd, 2011

According to the Choson Ilbo:

The Weekly Chosun has obtained detailed official records of some 2 million adult residents of the North Korean capital Pyongyang from a source in the North Korea-China border area. The data, which contains the names, date of birth and home addresses of 2,108,032 Pyongyang residents, was compiled by the North’s State Security Department in 2005.

The data does not include children up to age of 17 or an estimated 10,000 members of the elite including relatives of leader Kim Jong-il, or of soldiers stationed in Pyongyang from provincial areas, according to the source.

But it does include people in four districts that were excluded from the Pyongyang administrative area last year. According to official data published by South Korea’s Unification ministry based on the North’s Central Yearbook in February, Pyongyang’s population shrank by about 500,000 as a result of administrative restructuring. But the list shows only about 197,000 adults living in those four districts in 2005.

The difference of 300,000 is too big to make sense, even if the omitted child population is taken into consideration.

The most remarkable aspect of the data is the shortage of men. There are a mere 870,000 men on the list compared to 1.22 million women.

What caused the imbalance is not known but it is possible that many men are soldiers and therefore not counted. Another guess is that there are more women in the capital because they are shipped there for mass rallies.

A former senior North Korean official who defected to the South in 2007, said, “More than six out of every 10 Pyongyang residents are female. It’s mostly the elite who are allowed to live in Pyongyang. A lot of men have been moved out to the suburbs, but the women are mobilized for mass events, which explains the gender imbalance.”

Based on analysis of the records, the average marriage age is 27 years old. More than 80 percent of adults in Pyongyang were registered as married, compared to South Korea, where single households are on the rise. Some 410,000 or 20 percent of the total population in Pyongyang were unmarried and under 27 years old. Divorcees accounted for about 1 percent of the total population with 21,000, although North Korean defectors say divorce and remarriage rates there are gradually increasing.

About 830,000 or more than one-third are party members — a very high ratio considering that the total number of party members across North Korea is about 2 million.

The remaining 1.28 million seem to be either prospective members or family of members. They are said to be working mainly in party-affiliated organizations.

A defector from Pyongyang told the Weekly Chosun, “It’s hard for non-party members to live in Pyongyang. Many people are in the process of becoming party members, even if they haven’t been admitted yet. They consider it an honor. So really most people in Pyongyang are in the party.”

According to the data, there are 124 registered foreign nationals in Pyongyang from 15 countries including the U.S., Japan, China, the former Soviet Union or Russia, the Czech Republic, Canada, France, and Lebanon. Japanese citizens top the list with 86, but they are likely to be ethnic Koreans. About one person from every European country lives in Pyongyang.

Read the full story here:
Official Data Shed New Light on Pyongyang Population
Choson Ilbo
201-1-23

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ROK government planning to resume construction and relax sanctions in Kaesong zone

Thursday, October 20th, 2011

Pictured above (Google Earth): The towns mentioned in the article below from which the Kaesong Industrial Zone could draw more labor: Pongchon (봉천), Kumchon (금천), and Phyongsan (평산).

Institute for Far Eastern Studies (IFES)
2011-10-20

According to South Korea’s Ministry of Unification (MOU), the “May 24 Sanctions” that went into effect after the sinking of the naval boat Cheonan was relaxed and began to permit the resumption of construction of businesses in the Kaesong Industrial Complex (KIC). In addition, plans to build fire stations and emergency medical facilities in the area are also currently underway.

After South Korean Grand National Party chairman Hong Jun-pyo visited KIC on September 30, 2011, the ROK government has reached the following decisions: 1) to allow the resumption of halted factory constructions; 2) to build a fire station and emergency medical facility; 3) to resume repair work for commuting roads for KIC employees; and 4) to extend the operations of commuter buses.

This means seven companies that received permits in the past to begin construction but stopped after the sanctions went into effect would be able to resume the halted construction projects.

According to the Ministry of Unification, the seven companies include three metal and machinery, three textile, and one electronic factories, taking up a total area of 103,527 square meters. The total site of production facilities of stage 1 businesses in the KIC reaches 2,171,900 square meters, in which the currently operating 123 companies take up 783,471 square meters. With the sanctions lifted, the total area of businesses in operation will reach 885,950 square meters.

In addition, five companies awaiting construction for expansion will have to wait a little longer. The authorities announced to discuss this issue at a later date, looking positively on their construction to resume shortly as well.

Also the MOU announced to push forward with the establishment of fire stations and emergency medical facilities, “to protect the properties and health of businesses and employees of the KIC. The plans to break ground for fire station will begin in mid-November and is expected to be completed by late next year.”

The layout for the KIC fire station was completed in December 2009 and 3.3 billion USD has been budgeted to fund the construction. The station will be constructed on a steel frame on a 3,305 square-meter lot with the total floor space to be around 2,182 square meters.

The Kaesong Management Committee has been operating a “fire/police station” from April 2005. But with occurrences of accidental fires since last winter, it has reinforced the number of fire engines and manpower – currently at a total of eight fire trucks and 36 fire fighters.

Medical facilities in the KIC will also be completed by the end of 2012 once the construction begins early next year. About 3 billion USD is set for this project.

Currently at the KIC, Green Doctor’s Cooperation Hospital is in charge of providing medical and health services in the KIC, with South Korea Green Doctor’s Kaesong Hospital treating the South Korean employees and North Korean Comprehensive Clinic treating the North Korean employees exclusively. The South Korea Green Doctor’s Kaesong Hospital is currently operated by volunteers at a clinic level. The hospital was in the process of improving the facilities to more than ten beds. However, this project was halted after the May 24 sanctions went in effect.

On another note, the MOU also announced that maintenance work for the road connecting Kaesong City to the KIC would begin. The road is normally used by North Korean employees of the KIC. It was also announced that the number and operation of commuter buses would increase to help with the commute. The buses operate in the 20 km radius; the plan is to increase that to 40 km. Since September 2010, the number of buses increased to 400.

There are plans to extend the service to cover the areas of Kumchon, Bongchon, and Pyongsang. However, the roads to these areas are unpaved and extension of transportation services to these areas will require negotiations with the North Korean authorities.

Although these measures will alleviate some of the problems faced by the businesses in the KIC, the MOU still stands firm on its position that North Korea must take responsibility and make formal apology for the Cheonan incident in order for a fundamental resolution of the situation to occur.

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Some interesting recent publications and articles

Thursday, October 20th, 2011

1. “Relying on One’s Strength: The Growth of the Private Agriculture in Borderland Areas of North Korea”
Andrei Lankov,Seok Hyang Kim ,Inok Kwa
PDF of the article here 

The two decades which followed the collapse of the communist bloc were a period of dramatic social and economic transformation in North Korea. The 1990-2010 period was a time when market economy re-emerged in North Korea where once could be seen as the most perfect example of the Stalinist economic model. The present article deals with one of the major areas of socioeconomic change which, so far, has not been the focus of previous studies. The topic is about the growth of private agricultural activities in North Korea after 1990. This growth constitutes a significant phenomenon which has important social consequences and also is important from a purely economic point of view: it seems that the spontaneous growth of private plots played a major role in the recent improvement of the food situation inside North Korea.

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3. Korea Sharing Movement anti-malarial program (Via Cancor)
Read a PDF of on the project here

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4. What is it like to teach at the Pyongyang University of Science and Technology (PUST)?
Find out from one instructor here. More on PUST here.

 

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South Korea to allow firms to resume Kaesong construction

Tuesday, October 11th, 2011

Pictured above (Google Earth): Kaesong Industrial Zone (Sept. 2009)

According to Reuters:

South Korea said on Tuesday it will allow 120 of its firms to restart building a joint industrial park with North Korea, a fresh sign of tensions between the rival countries easing.

Construction of five factories can resume, and work to build seven new ones can go ahead, South Korea’s Unification Ministry said, 17 months after stopping activity in protest at what the South said was an attack by the North on one of its ships.

The South Korean firms employ about 46,000 North Korean workers at the Kaesong industrial park to make clothes, utensils and watches, taking advantage of cheaper labour and property than is available in the South.

According to the Choson Ilbo:

[The Ministry of Unification] will also build a fire station and hospital at the complex, repair a highway linking the city of Kaesong with the industrial complex, and add 45 buses to shuttle North Korean workers to and from the facility.

Previous posts on the Kaesong Zone can be found here.

Read the full story here:
S.Korea allows work at factories in North to restart
Reuters
2011-10-11

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Lankov on DPRK-Russian economic relations

Tuesday, September 27th, 2011

Andrei Lankov writes in the Korea Times:

In 2010, the volume of trade between these two countries was merely $110 million. As international trade goes, this volume is tiny. By comparison, in the same year North Korea’s trade with China was around $3.4 billion, some 30 times larger than its trade with Russia.

The reason for this inactivity is quite simple: Russian companies have no interest in dealing with North Korea. In the Soviet era, trade flourished because it was subsidized due to geopolitical concerns of Moscow. Currently, when it comes to pure economic considerations, North Korea has almost nothing to offer the new Russian economy.

North Korea has only two resources that can be sold on the international market. First, it has deposits of minerals (coal, iron ore). Second, it has a relatively large quantity of cheap labor ― or to put things in a less cynically capitalist way, there are millions of North Koreans willing to work for $10 a month.

But Russian companies are decisively uninterested in North Korean minerals. These mines may be attractive to resource-hungry China, but not to Russia, which has the riches of Siberia at its disposal. The chronic political instability in which North Korea is immersed is another reason which lessens Russian interest in North Korean minerals.

Cheap labor is more attractive, and indeed Russia has continuously used North Korean labor since 1967 but not in the North itself. Some Chinese companies began to outsource to North Korea, and built small factories there, in order to take advantage of the obscenely low local wages. This approach is not very attractive to Russia, since it is not a major player in producing winter parkas, wool hoods, or running shoes. Russian companies prefer to use North Korean workers inside Russia itself.

These workers are sent to Russia by the North Korean authorities and can be described as indentured labor. Their families are hostages who can be punished if a worker does something improper and the workers are also expected to ‘donate’ a significant part of their wages to the state. Despite these harsh conditions, one should not forget that these jobs are among the best paid regular jobs in the country. North Koreans compete for opportunities to become indentured laborers in Russia.

That said, the scale of these ventures is rather limited, as is the demand for cheap labor in the Russian Far East (the only part of Russia where the use of North Korean laborers really makes practical sense).

Aside from this, North Korea has something else to offer – its geographical location. This country blocks all land routes to the prosperous South. Russia has much interest in the South Korean market, especially when it comes to the sale of natural resources. Impeding this is the existence of North Korea, and the continued strained relations between the two Korean states, making sales of Russian commodities rather difficult.

So it is not incidental that the two most important potential projects are a railway and a gas pipeline. Both projects can hardly be described as “economic cooperation” between North Korea and Russia, since neither has much to do with the North Korean economy itself. North Korea, in these cases, is present merely as a space to be traversed. It would be no different if it were a dessert or jungle. Russia is willing to pay North Korea for facilitating Russia’s economic link with the South, and that is all.

So it is not surprising that an agreement on the pipeline construction was signed after the Russian-North Korean summit. This project is indeed acceptable to the North, since it will mean easy money for transit, it is favorable to Russia, and it will be good for the general situation since it will bind Russia, North and South Korea closer.

Yet, a word of caution is necessary. In spite of all official statements, we should not expect large-scale construction work to begin in the near future. The political risks remain huge, so it is likely that Russian companies will not rush headlong into the project. The recent agreement should rather be seen as a declaration of intent. In all probability, the trans-Korean pipeline and trans-Korean railway will be built eventually. But the completion of these important initiatives will probably take many, many years.

Read the full story here:
Russia-N. Korea Trade
Korea Times
Andrei Lankov
2011-9-25

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Catholicism and the DPRK

Saturday, September 24th, 2011

According to Catholicculture.org (2011-9-23):

Religious leaders, including Catholic leaders, from democratic South Korea are visiting Communist North Korea, one of the world’s most repressive nations.

“The visit of a delegation of religious leaders in North Korea is a gesture to keep an open channel with the North,” says Bishop Peter Kang of Cheju, president of the bishops’ conference. “But we need to be realistic, and not have any great illusions. Religions will continue to bring humanitarian aid to the population of the North who suffer from hunger, and this is the interest of Pyongyang. Believers in the North are closely monitored and religious freedom is denied.”

Delegation itinerary:

According to KCNA, the delegation arrived in Pyongyang on Sept 21:

A south Korean delegation of 7 religious orders headed by Kim Hui Jung, representative chairman of the South Korean Religionists Council for Peace and head of the Kwangju Archdiocese of the Catholic Church, arrived here on Wednesday.

According to KCNA, the group held a meeting on the 22nd:

A meeting of north-south religionists for national reconciliation, unity and peaceful reunification took place in Pyongyang on Thursday.
Present at the meeting were Jang Jae On, chairman of the Religious Believers Council of Korea; Kang Yong Sop, chairman of the Central Committee of the Christian Federation of Korea; Sim Sang Jin, chairman of the Central Committee of the Buddhist Federation of Korea; Kang Chol Won, vice-chairman of the Central Guidance Committee of the Chondoist Association of Korea; and members of religious organizations.
Also attending it were members of the delegation of south Korea’s 7 religious orders led by Kim Hui Jung, representative chairman of the South Korean Religionists Council for Peace and head of the Kwangju Archdiocese of the Catholic Church.
Speakers at the meeting spoke of the pleasure of representatives of different religious organizations in the north and the south at sitting together and having their meeting for national reconciliation and unity and peaceful reunification.
They noted the meeting would mark a meaningful occasion in demonstrating internally and externally the strong will of the believers in the north and the south to tide over difficulties in the way of national reunification, promote national concord and bring about a new phase of peace and independent reunification.
They called upon believers in the north and the south to advance, holding higher the banner of “By the Korean nation itself” convinced that the implementation of the June 15 joint declaration leads to the reunification and peace of the country.
A joint statement of the believers in the north and the south for national reconciliation, unity and peaceful reunification was made public at the meeting.
The statement said that they would make positive efforts to defuse antagonism and distrust, tension and confrontation between compatriots, remove the danger of war and ensure durable peace.
It stressed the need to solve all the problems between the north and the south in conformity with the will and interests common to the nation.
It went on:
The Religious Believers Council of Korea in the north and the south Korean Religionists Council for Peace will regularly hold meetings to boost dialogue and cooperation between themselves and actively conduct a movement to achieve the unity of believers and reunification.
The statement ardently called upon all the Koreans in the north and the south and abroad to join as one in the drive for national reconciliation, unity, peace and reunification.

According to KCNA, following the meeting the delegation visited Mangyongdae, Mt. Paektu, the Arch of Triumph, the Taedonggang Combined Fruit Farm and its new processing factory, and saw “Arirang”.

On Sept24, the delegation departed.

Some history:

Around the time of the delegation’s visit, Kwang On-yoo sent out the following information to the Korean Studies list:

Just before the Korean War there were 52 Catholic parishes in the North, with some 50,000 believers in three dioceses, Pyongyang, Hamhung and Chunchon, plus a territorial abbey that was a direct subject of the Holy See.

After the end of the Korean War and the resulting division of the nation, the Vatican handed over the Apostolic administration of the North Korean dioceses to bishops in South Korea.

The current Archbishop of Seoul, Cardinal Cheong Jin-suk, is the Apostolic Administrator for Pyongyang and Hamhung while Bishop Kim Un-hwi of the Chunchon diocese in South Korea is the Apostolic Administrator of Chunchon diocese in North Korea.

Over the years, requests by the South Korean Bishops for pastoral visits to the North Korean dioceses have repeatedly been denied.

Since 1988, the North Korea regime has presented Jangchung ” Cathedral” [See satellite image here], the only so called Catholic church in North Korea, to outsiders as a shining example of North Korean Catholicism with hundreds of parishioners. Actually, the church has no functioning priest and no sacraments.

In April, a Seoul based North Korean defector’s radio station, Free North Korea, alleged that Jangchung Church is in fact a clandestine cocaine factory where cocaine is manufactured for illegal export, to generate much needed foreign currency.

This is the current state of North Korean Catholicism.

I do not have any reason to believe that the church is used to produce cocaine since it has been effective at generating revenue and assets from abroad (especially South Korea) through more “traditional” methods–such as facilitating the recent delegation.

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DPRK owes USD $1.5b to ROK

Monday, September 19th, 2011

According to Yonhap:

North Korea owes about 1.8 trillion won (US$1.5 billion) to South Korea in food and other shipments, with its first repayment due next June, but chances of repayment are slim given the country’s crumbling economy, a government report said Monday.

The debt is for food, railway equipment and raw materials South Korea has provided to its impoverished communist neighbor in the form of loans over the past decade, according to the Unification Ministry report submitted for the annual parliamentary audit.

South Korea had been one of the largest aid providers to the North, but such shipments were halted after President Lee Myung-bak took office in early 2008 with a pledge to link aid to progress in efforts to end Pyongyang’s nuclear weapons programs.

Repayment of the loans was scheduled over 20 years with a 10-year grace period, at 1 percent annual interest. The North is scheduled to make its first repayment in June of next year for a $5.83 million food loan extended in 2000.

South Korean officials, however, have cast doubt on that repayment given the North’s dire economic situation.

The DPRK remains in debt default from loans taken in the 1960s and 1970s. The Russians are in talks to forgive DPRK debts (Likely in connection with developments of the Rason economic zone and/or natural gas pipeline).

You can learn more about speculating on the repayment of North Korean debt here.

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Optimism remains on gas pipeline between North and South Korea

Tuesday, September 13th, 2011

Institute for Far Eastern Studies (IFES)
2011-9-7

An article entitled, “Joint energy project on the agenda” was featured in the KCNA on August 31, which elaborated on the agreement reached between the DPRK and Russia on August 24 for the construction of a gas pipeline. The joint project is also inclusive of South Korea.

The KCNA said in the article, “The three countries have explored various options in transporting gas and have reached a consensus on building a gas pipeline running through North Korea will be the most cost-effective option.”

It also stressed this project will be beneficial for all three parties. In addition, Russia was commended as the major world power in natural gas and oil reserves and production and stressed Russia is turning its attention to expanding the energy sector.

When the Sakhalin – Komsomolsk – Khabarovsk pipeline that began construction in 2009 is completed, it will be equipped to provide enough gas not only domestically but across the Pacific-Asia region, producing a capacity of 30 billion cubic meters of gas per year.

The news also covered the specific plans of the Russian government to expand its energy supply; to boost the exports of oil and gas from three to thirty percent and five to twenty-five percent respectively, until the year 2020.

Therefore, the inter-Korean gas pipeline construction between the DPRK and Russia will be a vital project for Russia.

On August 30, the ROK’s Grand National Party (GNP) chairman Hong Jun-pyo declared, “The trilateral negotiation will be expected to take place sometime in November on the inter-Korean gas pipeline project.”

Hong also stated, “The ROK-Russia and the DPRK-Russia bilateral agreements have already been reached. Once the three parties meet to sign the tripartite agreement, the project will soon take off.” He also added, “President Lee Myung-bak has quietly pushed forward with the gas pipeline project since he first took office and it will be his major accomplishment.”

After the bilateral summit was held between the two leaders of Russia and the DPRK on August 24, the two nations have consented to establish a special commission to work cooperatively on the gas transit project running through the territories of North Korea to South Korea.

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Inter-Korean trade statistics update

Wednesday, August 24th, 2011

According to the Choson Ilbo:

According to the Unification Ministry, 123 firms were operating in the industrial park as of July, with combined production output amounting to US$34.87 million in May, up 25 percent from $27.79 million year-on-year.

The total volume of inter-Korean trade through the industrial park reached $825.88 million in the first half of this year, up 19.5 percent from last year and a whopping 135.8 percent from 2009.

South Korean staff dwindled from 1,461 in 2008, when inter-Korean trade was at its height, to 801 in May this year, but the number of North Korean workers rose from 36,650 to 47,172. And some 3,700 more North Korean workers were hired even since May last year when the South banned new investments there after the North sank the Navy corvette Cheonon in March.

At the moment, the regime is unlikely to shut down the industrial park, since nearly 50,000 North Koreans are working there. But experts stress that the government should take the seizure of the properties in the resort as a warning and be prepared for anything that the regime could do.

“There’s nothing we can be sure of in inter-Korean relations,” said Dong Yong-seung, a researcher at the Samsung Economic Research Institute. “Risk factors always exist because the government launched the Kaesong project without providing any safety net to protect its people and properties, as in the case of the Mt. Kumgang tour project.”

South Korean investments in the industrial park amount to W920 billion (US$1=W1,079) — W540 billion invested by the 123 firms, and W380 billion from the government and public corporations to lay the infrastructure, including electricity and communications facilities, and landscaping.

If the regime shuts down the industrial park, the South would suffer double the losses it incurred from the regime’s seizure of the properties in Mt. Kumgang, which are worth W484.1 billion.

Read the full story here:
Kaesong Firms Worry as N.Korea Seizes Mt. Kumgang Assets
Choson Ilbo
2011-8-24

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