Archive for the ‘South Korea’ Category

Kaesong Complex and ROK goods become harder to find in DPRK

Thursday, March 10th, 2011

According to the Daily NK:

This year, the North Korean authorities have been cracking down on the sale and distribution of products, tools and materials coming out of the Kaesong Industrial Complex. As a result, such Korean goods, formerly an expensive but popular choice in Hwanghae and South Pyongan Provinces, are now hard to find in markets.

A source from South Pyongan Province who spoke with The Daily NK in China explained, “Right up until last year, literally anything being made in the Kaesong Complex was available in the market, including clocks, metal, screws, clothes, underwear, toys and parts of electronics. However, the amounts have fallen dramatically since regulations were strengthened.”

The reason behind the regulations is unclear, however; the source suggested it could only be because of deteriorating inter-Korean relations.

Regardless, the source went on, “Nowadays, revealing the fact you sell those Kaesong Complex goods results in high fines and puts you in a bind” Therefore, he went on, “Only bread (Choco Pies), stainless steel or ceramic bowls and underwear are being sold.”

One consequence of the crackdown is that it makes the sale of other South Korean products smuggled in from China equally difficult. Albeit with some provincial differences, clothes and electronics cannot now be displayed on stalls, and must be sold in alley markets in secret.

A source from Shinuiju explained, “Market watch guards go around markets every day inspecting stalls with no notice; their investigation into South Korean products is really severe.” He explained, “If they find goods with Korean writing on, they confiscate them and give them back after two or three days later, after fines have been paid.”

“I hear there was a decree from above reinforcing crackdowns, but won’t this only lead to bribes?” the source pointed out.

Even when readily available, South Korean products are at the top of the price range, so most average families cannot afford them; one Choco Pie, a circular, individually wrapped chocolate cake made famous by the movie “JSA”, is between 180 and 200 won, a set of women’s underwear is 90,000 won, and a set of roughly ten plates, five or six small bowls and some coffee cups is around 250,000 won.

The source reported, “Due to the severe regulations, some traders sell them at home or in secret, hiding the goods behind the curtain.”

Interestingly, one South Korean official with the Kaesong Industrial Complex told the Daily NK that product leakage is not a problem at Kaesong, saying, “There have been almost no cases of complete products leaking out, but it is possible for stock, tools or things provided to workers like Choco Pies. However, the leaks are not enough to affect factory management.

And yet, one defector who used to be a worker in a shoe factory in charge of testing product quality explained that the siphoning off of materials, complete products, tools and other things is common among North Korean workers.

“The way they hide things and bring them out of the factory is really expert. I sometimes put up to 20 pairs of shoes on my body and came out of the factory. If you wear a long, thick winter coat then it is not so remarkable. Sometimes we did it in collusion with the factory manager.”

Read the full story here:
South Korean Products Disappear from Markets
Daily NK
Park Jun Hyeong and Mok Yong Jae
2010-3-10

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ROK firms hurt by inter-Korean trade restrictions

Sunday, March 6th, 2011

According to Yonhap:

Hundreds of South Korean companies doing business with North Korea are teetering on the edge of bankruptcy due to a prolonged cross-border trade ban, the head of the first inter-Korean joint venture said Sunday.

Inter-Korean trade flourished following a summit between the divided countries in 2000, but has been banned by South Korea since last May in response to the sinking of the Cheonan corvette two months prior, which Seoul says a North Korean submarine torpedoed.

According to the South’s unification ministry, about 860 South Korean companies are operating in North Korea.

“South Korean companies, which invested about 200 billion won (US$179 million) in Pyongyang and Nampo, North Korea, are on the brink of bankruptcy because of the suspension of the inter-Korean trade,” Kim Jung-tae, head of Pyongyang Andong Hemp Textiles, said in an interview with Yonhap News Agency.

Pyongyang Andong Hemp Textiles is the first inter-Korean 50-50 joint venture between the South’s Andong Hemp Textiles and the North’s Saebyol General Trading Co., which was established in October 2008.

Kim said the companies posted a combined $150 million in operating loss due to Seoul’s ban on inter-Korean trade.

In June, Kim formed a body consisting of about 200 South Korean businessmen to seek solutions to the prolonged inter-Korean trade suspension. In its opening ceremony, the body called for the government to implement measures to resume inter-Korean trade.

However, the unification ministry holds firm to its position that the trade ban will remain intact until the North takes responsible measures for the sinking of the Cheonan.

Read the full story here:
S. Korean firms reeling from inter-Korean trade ban
Yonhap
3/6/2011

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Defectors remit US$10m a year to DPRK

Wednesday, February 23rd, 2011

UPDATE 3 (2/23/2011): According to Yonhap:

A recent survey of North Korean defectors in South Korea showed Wednesday that a large number of them use part of their resettlement money from the government here to help their families in the North.

In the survey conducted in November by the Organization for One Korea, a group run by unification activists, 71 percent of 350 respondents said they have sent money back to the communist country before. About 66 percent of the cash remitters said that they used part of their money received from the South Korean government.

In an effort to buffer the initial costs of resettlement, the government here provides each defector with a subsidy of 6 million won (US$5,330) and partly finances their housing.

More than 20,000 North Korean defectors have arrived in South Korea since the 1950-53 Korean War ended in a truce. The number does not account for the estimated tens of thousands hiding in China.

According to the survey that had a margin of error of 3.59 percentage points, about half of the cash remitters said brokers took away 30 percent of their money sent to the North as a fee, while only 65 percent believed the remainder was entirely delivered.

North Korean defectors are 17 times likelier to depend on government allowances, according to the Unification Ministry. Over 50 percent of defectors depend on a universal welfare program that pays them about 400,000 won (US$355) a month.

Defections began to accelerate after a massive famine swept through North Korea in the mid-1990s, killing an estimated 2 million people. North Korea considers defectors criminals punishable even by death.

Read previous recent stories about remittances below.
(more…)

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DPRK defectors face problems adjusting to life in the ROK

Wednesday, February 16th, 2011

According to Yonhap:

Half of North Korean defectors’ households in South Korea earn less than 1 million won (US$893) per month, a poll said Wednesday, underscoring the economic difficulties they continue to face in the capitalist society here.

The National Police Agency, which conducted a survey of 12,205 households between August and October last year, said 50.5 percent of them fell into that income range. About 23 percent of them earn less than 500,000 won a month, it added.

The figures contrast with South Korea’s per capita income, which stands at around US$20,000. The survey also coincides with another that said earlier this month that the average monthly income of North Korean defectors with jobs here was 1.04 million won and that 38 percent of them were part-timers.

More than 20,000 North Koreans have defected to the South since the end of the 1950-53 Korean War. The defections have taken place mostly since the 1990s, and the border between the two Koreas remains heavily fortified.

Nearly 40 percent of the defectors surveyed by the National Police Agency said they were living under tough economic conditions. Fourteen percent complained of cultural differences and 13 percent of difficulties in getting jobs.

Defectors undergo several months of resettlement training once they arrive here from the impoverished communist state, mostly via China. South Korea also tries to cover their initial expenses of resettlement and provides them with citizenship.

Read the full report here:
Half of North Korean defectors’ households earn below 1 million won a month: poll
Yonhap
2/16/2011

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ROK to set public sector employment quota for DPRK defectors

Monday, January 31st, 2011

According to the Choson Ilbo:

The government will set a 1-percent quota for North Korean defectors in administrative assistant jobs at public agencies, it said Thursday. The government made the decision on the assumption that about 3,000 North Koreans arrive in South Korea on average every year who have a hard time adapting to their new environment partly due to difficulties finding jobs.

Some 200 North Korean defectors are expected to be employed as administrative assistants this year, given that the total hired by the central and local governments is about 20,000 annually.

A Ministry of Public Administration and Security spokesman said the government “decided to take the lead in hiring North Korean defectors to raise awareness of them and encourage private companies to follow suit.”

The ministry plans to ask former and current public servants to serve as mentors for defectors and give them a training course through which they can develop their skills.

According to the ministry, the total number of defectors stood at 7,687 in 2005 and is expected to exceed the 30,000 mark in 2013.

Read the full story here:
1% of Public-Sector Jobs to Go to N.Korean Defectors
Choson Ilbo
1/28/2010

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ROK seeks DPRK business registration system

Thursday, January 27th, 2011

According to KBS:

South Korea says it plans to implement during the first half of the year a registration system for South Korean firms that trade goods with North Korea.

An official from the Unification Ministry in Seoul said Monday that revisions must be sought on the law governing inter-Korean exchanges and cooperation in order to introduce the registration system.

The official said that the government will conclude such legal revisions within the first half of the year.

The ministry plans to propose a related bill before May in hopes of winning parliamentary approval for the plan by June.

The ministry had unveiled plans to introduce such a system when it briefed President Lee Myung-bak late last year on its key policies for 2011.

Additional Information:

1. The DPRK is working to bypass ROK trade restrictions.

2. The South Korean government is investigating companies suspected of trading with the DPRK.

Read the full story here:
S.Korea Seeks Registration System for Firms Trading with NK
KBS
1/24/2011

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South Korean companies under investigation for DPRK imports

Wednesday, January 19th, 2011

According ot Yonhap:

South Korea is investigating about 10 companies accused of importing North Korean merchandise in violation of a ban that came into effect last year over the sinking of a warship, an official said Wednesday.

South Korea suspended all inter-Korean trade in May last year when a multinational investigation found North Korea responsible for the sinking of the Cheonan earlier that year.

Unification Ministry spokeswoman Lee Jong-joo said in a briefing in Seoul that the authorities are questioning the companies on suspicion of violating the ban by importing marine products, mushrooms and other items from North Korea via China.

The companies claimed that they had thought the products were from China. Lee said the government plans to step up its crackdown on imports from North Korea starting next month in an effort to reinforce the ban.

Read the full story here:
Companies under probe for importing N. Korean products: official
Yonhap
1/19/2010

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Kim Il-sung sought discussions with US in 1974

Sunday, January 16th, 2011

According to the Korea Times:

The late North Korean leader Kim Il-sung proposed secret negotiations with Washington ahead of the assassination of then South Korean first lady Yuk Young-soo in 1974, according to a classified document dated June 6, 1974 from the U.S. Embassy in Senegal.

The revelation came after An Chi-yong, a former journalist based in the United States, posted the confidential dossier, classified as “secret,” on his website “Secrets of Korea,” Tuesday.

It reveals that the North’s founder, father of current leader Kim Jong-il, asked the late Senegalese President Leopold Senghor to deliver a secret message to the U.S. in 1974.

“President Senghor informed me on June 5 that during his recent visit to Pyongyang, Kim Il-sung charged him with a message for the United States government,” according to the dossier.

“Kim Il-sung said the DPRK (North Korea) would welcome secret negotiations with the USG (U.S. government) on the future of Korea.”

The suggestion was made two months before the assassination of the first lady on Aug. 15, 1974.

Yuk was shot by a Japan-born Korean believed to be a communist sympathizer and having acted upon orders from a pro-Pyongyang organization there.

The dossier also offers a glimpse of Kim Il-sung’s attitude toward Washington and Tokyo and his thoughts on the unification of the two Koreas.

“The North Korean leader told Senghor he felt the DPRK’s enemy in the Pacific is Japan, not us,” the document stated.

“What North Korea seeks is a confederation, not suppression of South Korea, and within that confederation, there would be a place for U.S. influence in the South.”

Another U.S. government document that cites a New York Times article by Richard Halloran reveals that Kim Il-sung may have sought a similar favor from the late Japanese Prime Minister Takeo Miki before the 1974 assassination.

“Halloran (NYT 8/10) says Kim Il-sung informed President Ford through Prime Minister Miki he wants to open direct talks with us to settle outstanding issues of Korea,” according to the dossier dated Aug. 11, 1975. “Wants us to send envoy to prepare agenda for talks with HAK (Henry A. Kissinger) on U.S. troop withdrawal, peace treaty to replace 1953 truce.”

The two Koreas remain technically at war as the 1950-53 Korean War ended in an armistice, not a peace treaty

It remains uncertain whether the communist North succeeded in holding bilateral talks with Washington.

A declassified U.S. document shows that Pyongyang continued its efforts to have dialogue with the U.S. even after the tragic assassination took place.

It says on Aug. 27 1974 an aide to then Romanian President Nicolae Ceausescu met with then U.S. President Ford at the White House to deliver a message from Kim Il-sung.

“The North Korean leadership wants to have confidential contact with the United States for discussions,” according to the declassified memorandum from President Gerald Ford’s files.

Yet, Ford’s response to the repeated proposal for talks was lukewarm.

“Certain things must precede such contacts. We don’t want to go in without a firm understanding,” the U.S. President was quoted as saying in the declassified documents.

Here is a link to the actual document.

Here is a link to “Secret[s] of Korea“.

Read the full story here:
NK proposed talks with US before 1974 assassination’
The Korea Times
Lee Tae-hoon
2011-1-11

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New ROK firm begins Kaesong operations

Thursday, January 6th, 2011

According to Yonhap:

Despite persisting political woes, a new South Korean company has begun operating in North Korea’s border industrial complex that combines superior South Korean capital and know-how with the North’s cheap local labor, a government official said Thursday.

The company, known as DSE, completed building its factory in Kaesong in early May and is therefore exempt from the investment ban on North Korea that Seoul imposed later that month over the sinking of a South Korean warship, the Unification Ministry official said.

The ministry official, who spoke on customary condition of anonymity, said DSE began operating on Jan. 3 and is employing 160 North Korean workers, part of the 44,000 workforce in the Kaesong complex, to produce lighting apparatuses and other metallic products.

The number of South Korean companies operating in Kaesong now stands at 122, the official added.

South Korea has since sharply cut down on the number of its workers allowed to stay in Kaesong. The North, in an apparent act of desperation to revive its economy, has since called for lowering tension and holding cross-border dialogue. South Korean officials are demanding that the North first show “sincerity,” indicating Pyongyang must apologize for the series of provocations blamed on it.

Read the full story here:
New S. Korean company begins operating in N. Korean factory park
Yonhap
Sam Kim
1/6/2011

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DPRK delpoys Pokpung-ho (Storm)

Thursday, December 30th, 2010

Image from KCTV via Yonhap

According to Yonhap:

North Korea has deployed new battle tanks and bolstered the size of its special forces by 20,000 over the past two years, deepening the threat of unconventional warfare against South Korea, the South’s new defense white paper said Thursday.

The biennial defense paper also defined the North Korean regime and its military as the “enemy” of South Korea, a description stronger than before but short of reviving the symbolic tag of “main enemy” for the communist neighbor.

The new white paper was released as the South’s military resolved to strike back hard against future provocations by the North, which last month bombarded the South’s front-line island of Yeonpyeong, killing two marines and two civilians.

“Threats from North Korea’s asymmetric warfare capabilities such as special forces, artillery pieces and weapons of mass destruction have been on a steady rise since 2008,” Deputy Minister Chang Kwang-il told reporters.

Military officials here have said the North is increasingly focused on unconventional or “asymmetric” weapons, such as improvised explosives or low-cost missiles because the regime knows its aging conventional weapons are no match for the technologically superior South Korean and U.S. forces

The white paper confirmed for the first time that North Korea deployed its new battle tank, called the “Pokpung-ho,” which in Korean means “Storm Tiger,” believed to have been developed in the 1990s based on the Soviet Union’s T-72 tanks.

The North’s new tank is presumed to be equipped with either a 125- or 115-millimeter main gun, similar to that of the T-50 battle tank of the Russian Army, defense ministry officials said.

The paper didn’t say how many of the new tanks North Korea has “deployed for operational use,” but said the number of North Korean tanks rose to some 4,100 units as of November this year, from 3,900 in 2008.

Also, the paper said the number of lightly equipped North Korean special forces, who are trained to quickly infiltrate South Korea, increased to 200,000 from 180,000.

Overall, the total number of North Korean soldiers remained unchanged at about 1.19 million, but the North has reorganized its military to add four new divisions, the paper said.

Although its number of artillery pieces changed little over the past two years, its 170mm self-propelled artillery and 240mm multiple rocket launchers deployed on the front line are capable of carrying out a “massive surprise bombardment” on the South Korean capital of Seoul and its neighboring areas, the paper said.

North Korea is “presumed to have secured about 40 kilograms” of weapons-grade plutonium by reprocessing spent nuclear fuel rods four times by 2009, the paper said.

Concerns about the North’s nuclear weapons program deepened last month when Pyongyang, which conducted two nuclear tests in 2006 and 2009, revealed a uranium enrichment facility to a visiting U.S. scientist. The uranium enrichment program could give the North a second route to build a nuclear bomb.

“Given that North Korea claimed that some 2,000 centrifuges are operational in November 2010, the North is presumed to have pushed for the highly enriched uranium (HEU) program,” the paper said.

Early this week, Chang told reporters that his ministry decided not to revive the “main enemy” tag for the North to “minimize controversy,” because the defense white paper is an official government document that is “used internally and externally.”

Thursday’s defense paper clarified that the “North Korean regime and military are our enemy” that poses a “grave threat” to the South’s security by “staging military provocations such as the torpedo attack on the Cheonan warship and the shelling on Yeonpyeong Island.” Forty-six sailors were killed when the North allegedly torpedoed the Cheonan warship in March in the Yellow Sea.

“Not using the expression ‘main enemy’ does not mean that we softened our stance,” Chang said.

The new description is aimed at sending a strong message of warning to the North and clarifying that the North Korean regime and its military, not the people, are aggressors, according to the official.

South Korea first used the label “main enemy” for North Korea in its 1995 white paper after North Korea threatened to turn Seoul into a “sea of fire” a year earlier. Seoul stopped using the expression in 2004 in an apparent bid not to antagonize Pyongyang amid then-thawing ties.

In its defense paper published in 2008 under the government of President Lee Myung-bak, South Korea called North Korea an “immediate and grave threat” to its national security.

The two Koreas are still technically at war because the 1950-53 Korean War ended in a truce, not a peace treaty. About 28,500 U.S. troops are stationed in the South, a legacy of the three-year war.

The New York Times has more.

Additional information:
1. This web page does not focus on military affairs (except when it overlaps with Google Earth research or broader economics), but I have put some military information resources here for the convenience of readers.  Please let me know if anything should be added.

2. I have kept a chronological list of Yonpyong stories here.

3. I have kept a chronological list of stories related to the DPRK’s new uranium facilities here.

Read the full story here:
N. Korea deploys new battle tanks, boosts special forces
Yonhap
Kim Deok-hyun
12/30/2010

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