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NK’s Country Domain ‘.KP’ Gets Nod

Tuesday, October 2nd, 2007

Korea Times
Jane Han
10/2/2007

Its just a matter of time before North Korea meets the world through the World Wide Web, as its domain “.kp” has recently been delegated for use.

The domain .kp _ short for Korea, Democratic People’s Republic _ allocated to North Korea, but currently not in use, has been officially designated by the Internet Corporation for Assigned Names and Numbers (ICANN) to be managed by the Pyongyang-based Korea Computer Center (KCC).

The international organization’s board voted unanimously in mid-September to accept KCC’s request to activate the domain.

Although an initial request was made in 2004, ICAAN declined permission due to the country’s lack of technology, management and governmental support.

The domain has been officially listed with the Internet Assigned Numbers Authority (IANA), allowing Web sites to be managed like other country domains, such as .jp (Japan) and .kr (Korea, Republic of).

Experts predict that the opening of the web domain may serve as a gateway to link the reclusive nation to the global community.

However, North Korean officials have been quoted as saying, “The domain will be strictly managed under the guidance of the central government.”

The North Korean government operates a handful of official and unofficial Web sites on computer servers based in other nations. Most of them are used to promote the country to foreigners, but access from South Korea is blocked by the South’s authorities due to its decades-old laws on national security.

Posted in Communications, Internet, Intranet, Korea Computer Center (KCC) | Comments Closed

DPRK trade officials crack down on corruption

Friday, September 28th, 2007

Institute for Far Eastern Studies
NK Brief No. 07-9-28-1
9/28/2007

Since early this year, North Korean authorities have been systematically implementing a double-entry accounting system to keep track of cross border trade with China, and as of late have been cracking down on private sales of goods imported under state requisitions.

It has become common practice for most traders to keep two sets of books, a private accounting record, and a set of records for government use. As these traders exported state goods to China, they would conspire with Chinese counterparts and make huge profits by recording lower prices than goods were actually being sold for. In many cases, bribes are taken to turn officially imported and exported goods (minerals, seafood, etc.) over to private sellers. These facts came to light through Chinese traders in business with North Korea.

Recently, however, investigations by the Kangsung Trade Company, operated under the supervision of the People’s Armed Forces Bureau, led to the conviction and execution of a foreign currency trader in Kangwon Province, Wonsan City and another from South Hamkyung Province, Hamheung City on charges of funneling company funds for private use. The crackdown appears to be because embezzlement and other forms of corruption are on the rise.

It was also disclosed that the foreign currency trader in Hamheung was accepting money from private business operators and using the company’s name to lend import and export quota chits. Inspectors raided the homes of the suspects and found large amounts of U.S. currency and gold, as well as no small amount of Japanese yen.

The human rights NGO ‘Good Friends’ reported in last month’s newsletter, “ After Oh Moon-hyuk, foreign currency director for the Chosun Fabric 88 Trade Company in Yunsa County, North Hamkyung Province, built a private villa on a plot with a good view, and purchased a Mercedes out of pocket, he drew the attention of General [Kim Jong Il] and was exposed. He was publicly executed in the middle of last July.” The NGO went on to report, “Every day young girls were called to the villa for his enjoyment, and security forces and police made it a point not to stop by the area near the villa often.”

Trade authorities in the area report that the crackdown on these violators has had no effect on DPRK-PRC trade. High ranking officials are aware of the abuse of authority to earn money, but had to some extent turned a blind eye to the issue. The crackdown is a result of the recent considerable growth in the problem.

Posted in Black markets, China, Economic reform, Good Friends, International trade, Kangsung Trading Company, Military, Political economy | Comments Closed

US to Announce More Sanctions on NK Entities

Wednesday, September 26th, 2007

Korea Times
Jung Sung-ki
9/26/2007

(UPDATE: On Oct. 23, [2008] the State Department blacklisted two North Korean companies, Korea Mining Development Corp. and Korea Taesong Trading Co., for violating U.S. bans on the sale of equipment used in building missiles or other weapons of mass destruction to Iran and Syria. Citation: “North Korean Plane Was Grounded at U.S. Request “, Wall Street Journal, Jay Solomon, 11/1/2008 )

The U.S. State Department is expected to announce additional sanctions on North Korean entities connected to missile proliferation, Yonhap News reported Wednesday.

Some of the entities are believed to be linked to the Korea Mining Development Corporation (KOMID), which was designated in June 2005 in an executive order for supporting weapons of mass destruction proliferation, it said.

The measure would come at an awkward moment as envoys from six nations _ South and North Korea, the U.S., China, Russia and Japan _ gather in Beijing from Wednesday for a fresh round of negotiations aimed at disabling and eventually dismantling Pyongyang’s nuclear weapons and programs.

The U.S. Treasury had frozen some $25 million in North Korea-related money held in a Macau bank in late 2005, a punitive measure imposed as the six countries were signing an agreement toward denuclearization. That led to more than a year’s suspension in negotiations with the North.

The new round of six-party talks is already on shaky ground with suspicions that Pyongyang may have transferred nuclear-related material to Syria, prompting the unexplained Israeli air incursion into Syria earlier this month.

Tom Casey, a State Department spokesman, said Tuesday the new sanctions are related to missile technology transfers and downplayed possible negative repercussions on this week’s talks.

“The company that was sanctioned has been sanctioned previously for the same thing. So the net effect of this is really pretty minimal,” he said. “I don’t see…any reason why this should impact on the six-party talks.”

North Korea accused the United States of defending Israel’s recent airstrike against Syria, calling the strike a grave crime that undermines regional peace and stability.

The North’s main Rodong Sinmun newspaper said, “Israeli warplanes’ intrusion into the territorial airspace of Syria and bomb-dropping are an outright violation of Syria’s sovereignty and a grave crime that destroys regional peace and security,” according to Yonhap.

The North’s comments came days after high-level talks between North Korea and Syria. The two countries, which deny the allegation of a secret nuclear connection, did not provide details of Pyongyang talks.

Andrew Semmel, acting U.S. deputy assistant secretary of state for nuclear nonproliferation policy, said earlier this month that North Koreans were in Syria, and that Syria might have had contacts with “secret suppliers” to obtain nuclear equipment.

Semmel did not identify the suppliers. However, he said he could not exclude the possibility that a nuclear black-market network, run by the disgraced Pakistani nuclear scientist A.Q. Khan, might have been involved.

Semmel’s comments raised speculation that an alleged Sept. 6 Israeli incursion into Syrian airspace was a strike targeting a nuclear installation. U.S. officials have said Israeli warplanes struck a target. One U.S. military officer said the strike was aimed at weapons being shipped to Hezbollah militants in Lebanon.

Posted in Arms shipment, Illicit activities, International trade, Korea Mining Development Trading Corporation (aka Kapmun Tosong, KOMID), Mining/Minerals, USA | 1 Comment »

A Year in Waiting for Steel Plates

Wednesday, September 19th, 2007

Daily NK
Kim Chan Ku
Institute for Far Eastern Studies
9/19/2007

(UPDATE: On Oct. 23, [2008] the State Department blacklisted two North Korean companies, Korea Mining Development Corp. and Korea Taesong Trading Co., for violating U.S. bans on the sale of equipment used in building missiles or other weapons of mass destruction to Iran and Syria. Citation: “North Korean Plane Was Grounded at U.S. Request “, Wall Street Journal, Jay Solomon, 11/1/2008 )

Kimchaek boasts one of the largest steel factories and fishing ports in North Korea especially that of Daesung General Company’s east coast headquarters.

However, at once-famous seaport everything including ship, freezer, packing factory was obsolete and rust. Most of the Soviet-built machines in factories were at least 20 to 30 years old. And there were neither enough spare parts to fix machinery nor job orders, so the factories had stood still for a long time.

I consulted with local North Korean officials in Kimchaek and reached an agreement: ship repair dock will be built in Kimchaek, steel products necessary for building floating dock would be Daesung General Company’s responsibility, and other issues concerning building land factory and management of joint-stock company would be decided in Pyongyang.

Also we finished negotiation over fish export and Pollack fishing by trawler. Thus basic problems were solved.

I came back to Pyongyang on September 30. And another businessperson, Mr. Kim Sung Chan of Pamco Trading, told me his will to invest fifty percent of the capital.

All of sudden, Daesung General Company notified us that among our previous agreements, only the site of repair dock was decided and asked us to wait, promising final decision would delivered in one month.

To start first phase of building factories, it was most critical to have steel products ordered from state. We believed the promise from the North (to take responsibility of providing iron plates) and returned to America. However, after two month had passed, there was no news from Pyongyang. Curious, I called back and was told to visit North Korea as soon as possible.

On December 9, 1989 I arrived at Sun An International Airport. In Pyongyang, vice president of Daesung General Company (president was absent, traveling abroad) said “we asked the state for iron plates, but production plan was omitted in 1990 fiscal year so one more year of waiting is inevitable, or send us steel plates.”

In other words, our business plan was totally embarrassed and we had to make a new one. Again, I conferred with Mr. Kim and found out a solution, which was to buy a used floating dock from an American port. There was a fifty-year old used floating dock in Miami, Florida that we were able to buy. If repaired, it seemed available for another twenty years.

Finally, two obstacles had our plan failed. Firstly, it was supposed take at least three month and five hundred thousands US dollars (twice the price of dock) to convey the floating dock by sea. Secondly, (and more fundamental problem) the US government would not permit to sell the dock to North Korea. We were not even possible to transport the dock to Hong Kong and then to North Korea.

Because acquisition of required steel plate for floating dock was failed ultimately, the daring business had gone nowhere. Wasted much money and more than a year of time, I was so depressed at that time[.]

Posted in Agriculture, Daesung Trading Company, Economic reform, Foreign direct investment, Light Industry, Manufacturing, Sea shipping, Steel, USA | Comments Closed

Rationing in Chongjin, Increased Control of the Civilians

Monday, September 17th, 2007

Daily NK
Moon Sung Hwui
9/17/2007

According to the inside source in North Korea, it was revealed on 13th that there has been partially a rationing in Chongjin, North Hamkyung since August.

This is the first time to have checked about nation rationing in Chongjin since the first Summit held on June 15, 2000.

This rationing has begun even before the flood occurred, which was prior to August. This is strong evidence that the North Korean food shortage was not in serious state. There has been acknowledgement that there has been food rationing even after the flood in the beginning of September.

There has been a case of rationing in Moosan, North Hamgyung and some other regions during the first Inter-Korea Summit in 2000. There is high probability that this rationing could have relation to the upcoming 2nd Summit in October.

The insiders spoke on the phone that, “All of a sudden the Chongjin distribution center opened and started supplying to the workers and their families, an old and feeble persons and wounded soldiers with a 15-days-worth of food since August.”

The special rationings that occurred on special occasions, like the birthdays of Kim Jong Il and Kim Il Sung was only given through the factories or People’s Units. The distribution center were often closed or usually used as the place for selling Chinese merchandises. The reason why the rationing has restarted through the distribution center is that the authorities are thinking of long-term rationings.

According to the inside source, the distributed food include corn, wheat and rice. It is hard to tell whether the rice was produced in the South or North because the rice was immediately packaged after it’s been produced from rice-polishing machines.

The inside source said that “Civilians are not in belief that there will be a continuance of rationing even in October, because there was just a 15-days-worth of rationing being distributed in September.” The rationing was only given to people who worked at particular factories which made profits.

Kim, who resides in Chongjin, staying in Hwoiryeong for his export business, claims that, “We have to get our attendance ballot stamped every day in our factory. For people who skip work for no particular reason, they are being ferreted out by the factory manager, and even the secretary of the Party. In the morning, there are so many meetings and conferences being held that it is difficult for us to think straight.”

Also, factories that had stopped functioning due to the electricity and resource loss, made workers show up at work and emphasized the importance of production culture and lifestyle culture, reinforcing the projects of fixing the buildings and cleaning the buildings.

“Our attendance is being reported on daily basis, so if we don’t go to work for several days, we are automatically taken to People’s Safety Agency immediately.”

For people who have made their livings through business are becoming increasingly dissatisfied by having to work in an inefficient factory. Some claim that, “Are we going back to how we used to be,” raising more concerns.

Kim states, “It’s not like they’re giving us abundant supply of food. We were able to breathe a little bit by doing our own business, but now it’s suffocating us to death.”

He added “We are now so strictly controlled with only a 15-days of rationing; can you imagine how much worse it can get if the rationing continues to supply fully in the future?”

The background of rationing has not been clear as of yet.

Kim Jong Il visited North Hamkyung for the onsite inspection in the beginning of August. This could be a temporary remedy taken by Kim Jong Il, to increase the effect of his visit. Furthermore, it could be his ways of increasing control on Hamkyung area, where the commute and trade with foreign countries is active.

The North Korean defector who came to South Korea in 2005, Park Jeong Chul (pseudonym) said, “The rationing can be a temporary remedy to appease the public anxiety with the upcoming Inter-Summit in October. It’s because North Korea has enough provisions for the army and there is pressure from the international society for North Korea to become more transparent, North Korea is pretending to oblige.”

Posted in Agriculture, Labor conditions/wages, Public Distribiution System (PDS) | Comments Closed

KFA Friday!

Friday, September 14th, 2007

DPRK watchers are generally familiar with the Korean Friendship Association (KFA) and its president, Alejandro Cao de Benos. Alejandro has joined the rest of the DPRK blogging community and launched his own blog (in Spanish). His blog is here.

He only has a few posts so far, but he has several pages typed up on an argument he is having with a journalist from the Spanish television station, Cuatro (4). Apparently, Alejandro took some Spanish journalists on a recent KFA delegation, and like other journalists/film makers he has delt with (here and here), he did not like their final product.

The entire show “Love the Leader of all Things” can be seen on YouTube, but it is in Spanish: Part 1, Part 2, Part 3, Part 4, Part 5, Part 6.

Here are Alejandro’s comments about the show.

Posted in Civil society, Committee for Cultural Relations with Foreign Countries, Tourism | 2 Comments »

DPRK-PRC Friendship Distribution Center Under Construction in Sinuiju

Thursday, September 13th, 2007

Institute for Far Eastern Studies
NK Brief No. 07-9-13-1

It has been reported that Chinese and North Korean governments are working in unison to push forward with a plan to jointly build a goods distribution center in the North Korean city of Sinuiju. According to Yonhap News, China proposed a plan for North Korea to build a ‘DPRK-PRC Friendship Distribution Center’ in Sinuiju, and the two countries are currently involved in negotiations over the idea. North Korea has already signed an investment agreement welcoming Chinese investment firms.

In conjunction with this, North Korean Chamber of Commerce Secretary General Yoon Young-suk held an interview with Yonhap News in the Chinese city of Changchun on September 3. At that time, while refuting a new push for the development of the Sinuiju Special Administrative Region, he stated that “regarding the procurement of a range of goods required in [North Korea], I have heard talk of a plan for a DPRK-PRC Friendship Distribution Center in part of the Sinuiju region.”

The scope of trade between China and North Korea is growing by the day, yet the Sinuiju Customs Office responsible for customs clearance for Chinese imports was limited from the beginning, and the need for a replacement facility has been brought up time and time again. This new distribution center appears to be in response to these calls for a larger facility. The construction of the center will be a cooperative project involving materials and capital from China, while North Korea will provide the land and labor.

A trader from Pyongyang acting as a confidential informant stated, “repairs on the road portion of the [steel bridge spanning the Yalu River connecting Dandong and Sinuiju] carried out from the 10th to the 26th of last month were also part of the material aid from the Chinese.” Officials at the North Korean consulate in Shenyang traveled to the bridge on the 23rd of last month to inspect the progress of the upgrades.

Not long ago, a Chinese trader traveled to Pyongyang, then by road to Sinuiju and over the river to Dandong. He observed, “many construction workers involved in large-scale ground leveling construction work along the railroad tracks running through the heart of downtown Sinuiju,” and, “approximately 10-20 meter deep, very large scale construction appeared to be underway.”

Posted in Automobiles, Chamber of Commerce (DPRK), China, Economic reform, Foreign direct investment, International trade | Comments Closed

Spread of Religion among North Korean Soldiers

Monday, September 10th, 2007

Daily NK
Kim Yong Hun
9/10/2007

It was reported that a religion criticizing Socialism has been on the spread in North Korea’s army, and various publications and CDs relaying information on South Korea has been transmitted in secrecy.

It is the first time ever to be reported that there has been a spread of religion within the North Korean army.

On the 6th of September, the Committee for Democratization of North Korea collected and revealed an educational-purpose document, which was issued by the Chosun People’s Army Publishing Department. This 18-page manuscript, issued in March, 2007, was used in the two months following to educate soldiers and commissioned officers about the increase in soldiers relying on religion and foreign publications. According to the document, there is a need to re-indoctrinate the North Korean People’s Army in order to suppress the inflow of capitalism.

It warned that, “We should not look, listen, read the documents, broadcastings and video or audio materials made by the enemy. The enemy is using Radio and TV to launch false propaganda through well-made, strategic news and intrigue.” and “While the enemy continues to attack us with their political indoctrination, our soldiers must not sway to their influence. We must block off all means of broadcasting through which the enemies can trespass.”

The document states that “the CDs, recordings and publications from the enemies all contain information about their development of and the prosperity of capitalism. Their corruptive culture and lifestyle is embellished ingeniously in such a strategic manner. The signalmen must comply with all rules when using their radiotelegraph and every soldier must work to confiscate small-sized semiconductor radios and pocket-sized TVs.”

The reason why the North Korean military is complying with educational-purpose philosophy indoctrination is because the wide-spread transmission among soldiers of South Korean dramas, CDs, and publications that contain information on capitalistic society is seen as a serious problem.

In particular, the report advises very strictly that the soldiers not be dazzled by religion, and to pursue socialism no matter what. It conveys that religion is not only taking over the regular citizens but is becoming an influence within the army of North Korea.

The document states that, “The enemy is sending bibles, audio and video materials related to religion and superstition through various routes. They are placing spies within international delegations entering our borders to spread their religions and superstitious beliefs and win our citizens over to their side.”

In addition, “Religion and superstition are like poison that corrupts socialism and paralyzes class consciousness. Our soldiers must, more than ever, instigate a revolutionary awakening to defy the enemies’ maneuvers.”

It continues on, cautioning that “soldiers must be wary of superstition, religion and the foreign lifestyle, and when they find evidence of such things, must immediately stop them from spreading further. We must not get involved in the enemy’s strategic propaganda. Getting involved in the psychological warfare of enemies is considered high treason; and therefore, we must fight against it, considering this issue an emergency.”

It is also emphasized that, “Alcohol, Sex and Money are poisons that ruin our ideology and belief. We must increase the ideological indoctrination, ideological struggle and legal struggle in order to fight the spread of these elements of capitalistic ideology.”

The Committee for Democratization of North Korea revealed that “According to North Korean defectors, there have been consecutive economic downfalls since the nuclear tests, causing much difficulty in the daily lives of North Korean citizens. It is known that the situation for soldiers has worsened as well.”

The educational-purpose document is a kind of propaganda tool explaining background, measures, and outlines of the domestic state. Different indoctrination documents are distributed to different groups of individuals: what is disseminated among politicians differs from that which is given to workers or military.

Posted in Civil society, Domestic publication, Korean People's Army, KPA Publishing Dept., Military, Religion | Comments Closed

Pyongyang Vice: Tale of Veteran-Students

Monday, September 10th, 2007

Daily NK
Park Choel Yong
9/10/2007

Army Veterans in North Korea can have bright futures once accepted into college. In North Korea, serving in the Armed Forces, party membership, and college diplomas are three main keys for success.

However, a Veteran matriculate is not necessarily awarded with a diploma after four years.

Veteran-students without money or parental auspice would have to suffer turbulent years leading up till graduation.

First of all, most of them acknowledge that they are too old to study ardently (since veterans have spent at least seven to eight years in the Armed Forces); therefore, Veteran-students do not hesitate to take shortcuts.

Every North Korean university/college is organized as if it were a military academy. In this semi-military college student environment, Veterans usually take an officer role and often take advantage of their position, taking bribes from other students.

As another vice, some Veteran-students commit adultery while in college. An ex-serviceman studying in college and communist party members are the most eligible bachelors in North Korea. Many rich parents encourage their daughters to marry with collegiate Veterans.

Exploiting their popularity, some Veterans have wives to support in their hometowns, but engage with another woman in Pyongyang. Some even divorce their under-educated and less-privileged wives to marry their mistresses.

Often times, a divorced wife of a Veteran-student will come to the college in Pyongyang and seek help at the party office.

Some Veteran-students boast “There is a nice way to shut them (divorced wives) up!” The ‘way’ is demanding huge sums of money from the parents-in-law. The wife’s parents will be shocked, will tire of the petition, and eventually, the call for divorce will come from the other side.

A Veteran-student from my college never let his wife leave his hometown to visit him in Pyongyang because she was too rustic.

An additional area of concern is that Veteran-students frequently instigate fist fights.

The Veterans, who sweat and bled on the drill field, can not allow other students to regard themselves as being in the same class. So they bully other students into revering them, and often fight with those who refuse to do so.

At other times, these Veteran-students will provoke quarrels with police or traffic officers.

Their fighting ability ranks top, but academically, they are pitiful; yet they make no efforts to overcome the disadvantage.

Veteran-students learn how to exploit a situation. And as soon as they are appointed as party leaders after graduation from college, ex-servicemen tend to pursue power and money by preying on their subordinates.

North Korean people used to call American imperialists “wolves” (a very derogatory term). However, more people now have begun to redirect the term toward party officials, who were once Veteran-students themselves.

Posted in Civil society, Dating/Courting, Education, Korean People's Army, Military, Worker's Party | Comments Closed

Hundreds of firms plan to open in Kaesong

Wednesday, August 29th, 2007

Joong Ang Daily
Limb Jae-un
8/29/2007

Less than 10 percent of companies in Kaesong have stayed five years.

Hundreds of companies are lining up to operate in North Korea’s Kaesong Industrial Complex, but an economist said in a seminar yesterday that the current economic cooperation with South Korea won’t bring any significant changes to the communist country.

More than 200 companies have signed a contract with the Korea Land Corp. to join the 33 domestic companies currently operating in the industrial park, according to Kim Du-bok, an employee at the state-owned company.

Korea Land Corp. is responsible for assigning space in the industrial complex.

Among the new companies are a couple of firms with foreign connections that hope to open next year.

A Korean subsidiary of Tianjin JCI Cosmetic Corp., a Chinese producer of synthetic nail tips and other cosmetic goods, agreed Monday to lease space in the section allotted for foreign companies.

“Tianjin JCI Cosmetic Corp. and its Korean subsidiary, Dashing Diva, signed a contract to lease a piece of land,” Kim said yesterday.

To operate at the inter-Korean park, which uses North Korean labor and South Korean technology, a foreign company needs to have a South Korean subsidiary.

Yuhan-Kimberly, a joint venture between U.S.-based Kimberly-Clark and Korea-based Yuhan, has expressed a desire to set up a manufacturing base in Kaesong, but has not yet applied for space.

However, Cho Dong-ho, a professor at Ewha Womans University, said during a seminar in Seoul yesterday sponsored by the Korea Rural Economic Institute, that the government needs a more practical approach to stimulate reform and the opening of North Korea.

As an example of the failure, he said there are neither goods nor people to transport on the reconnected railroad between Seoul and Sinuiju.

He also said only 9.2 percent of the companies that tried to manufacture goods in Kaesong had done so for more than five years, as of January 2007. Many companies, he said, halted their operations after one or two years.

“The purpose of the economic policy toward North Korea is to support North Korea’s economic development and encourage reform and the opening of the North, but despite the fact that the cooperation is an economic issue, non-economic considerations were made a priority.”

Posted in Foreign direct investment, Kaesong Industrial Complex (KIC), Korea Land Corp. (RoK office), Special Economic Zones (Established before 2013) | Comments Closed

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