Archive for the ‘Worker’s Party’ Category

Pak Nam-gi executed over currency reform

Wednesday, March 17th, 2010

According to Yonahp:

North Korea executed a former top finance official last week, holding him responsible for the country’s currency reform fiasco that has caused massive inflation, worsened food shortages and dented leader Kim Jong-il’s efforts to transfer power to a son, sources said Thursday.

Pak Nam-gi, who was reportedly sacked in January as chief of the planning and finance department of the ruling Workers’ Party, was executed at a shooting range in Pyongyang, multiple sources familiar with information on North Korea told Yonhap News Agency.

“All the blame has been poured on Pak after the currency reform failure exacerbated public sentiment and had a bad effect” on leader Kim Jong-il’s plan to hand power over to his third son Kim Jong-un, one source told Yonhap on condition of anonymity.

Pak, a 77-year-old technocrat, was charged with “deliberately ruining the national economy” as a “son of a big landowner,” the sources said.

Mike wrote a few notes about Mr. Pak in February.

Read the full Yonhap story here:
N. Korean technocrat executed for bungled currency reform: sources
Yonhap
3/18/2010

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DPRK holds national meeting of agricultural workers

Thursday, March 4th, 2010

Institute for Far Eastern Studies (IFES)
NK Brief No. 10-3-4-1
3/4/2010

As the failure of North Korea’s currency reform drives the country’s food woes to even greater depths, DPRK authorities and farmers from around the country met on February 25 for two days of meetings under the theme, “Let’s Focus All Efforts on Farming and Resolve the Food Problem!”

It has been four years since North Korean authorities called for a nationwide meeting of agricultural workers, with the last meeting in February 2006. From 1974 to 1994, meetings were held annually in January or February, when farmers had a chance to rest between the fall harvest and the spring planting season. However, after the famine in 1995, in which millions starved to death, no meetings were held for twelve years.

This year’s New Year’s Joint Editorial called for North Koreans to revolutionize the light industrial and agricultural sectors in order to improve the lives of the people, and for them to struggle to resolve the country’s ‘eating issues’. However, in the aftermath of last December’s failed currency reform, the North’s food problems actually worsened to the point that people are starving to death. This led authorities to hold a nationwide agricultural meeting in order to show their determination to focus efforts on resolving food shortages and to encourage farmers and other residents to focus on agriculture.

According to the (North) Korean Central News Agency (KCNA), the meetings were attended by “[Cabinet Premier] Kim Young Il, [National Defense Commission Vice-Chairman] Ri Yong Mu, and [Supreme People’s Assembly Chairman] Choe Tae Bok, leading officials of ministries and national institutions, party and people”s committees and agricultural guidance organs in provinces, cities and counties, officials of farm primary organizations, model farmers, scientists and technicians in the field of agriculture and officials of relevant industrial establishments.”

Vice-Premier Kwak Pom Gi presented a report, stressing, “On the agricultural front this year, marking the 65th anniversary of the founding of the Party, we must decisively ease the country’s food issue, [and] the people’s eating issue, charging forward with the improvement of the lives of the people and the construction of a strong and prosperous nation.” He also called for assistance to agricultural communities and related sectors, and for the prioritization of agricultural goods and materials.

According to a source in North Korea reporting to the South Korean organization Good Friends, deaths due to starvation in South Hamgyong Province’s Danchon city and South Pyongan Province’s Pyongsong city were reported to central Party authorities. This led to meetings on January 27 and February 1 of central Party members, cabinet officials and People’s Security authorities at which emergency measures to stave off famine were discussed.

Results of a survey of living conditions in Danchon and North Hamgyong Province’s Chongjin reported to central Party authorities revealed many deaths due to starvation, while currently, the most deaths due to lack of food appear to be occurring in South Pyongan Province’s Sunchon and Pyongsong cities. Last year, Party authorities in these cities turned over approximately 65 percent of harvests to the military, while farmers were only issued, on average, five months worth of rations.

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North Korea: It’s the Economy, Stupid

Thursday, March 4th, 2010

Nautilus Institute Policy Forum Online 10-015A
Aiden Foster-Carter
3/4/2010

Too many Kim Yong-ils

Korean names can set traps for the unwary. Amid a multitude of Kims, almost all unrelated, North Korea adds an extra twist. German speakers, and some others, tend to mispronounce the J in Kim Jong-il as a Y. Not only is this incorrect, but currently it can confuse; for North Korea’s Premier – head of the civilian Cabinet, as distinct from the Dear Leader who chairs the more powerful National Defence Commission (NDC) – is named Kim Yong-il.

To add to the confusion, another Kim Yong-il was until recently vice foreign minister (one of several), but in January became director of the ruling Workers’ Party of Korea (WPK)’s international department: a post apparently vacant since 2007. As such, this Kim Yong-il met his Chinese counterpart Wang Jiarui, head of the Chinese Communist Party (CCP)’s international liaison department, when Wang visited Pyongyang in early February. Since his promotion, Kim Yong-il 2 (as it may be best to call him) has been reported as frequently at Kim Jong-il’s side. This suggests he may see far more of the Dear Leader than does anyone else involved in DPRK foreign policy, including the man hitherto thought to be the eminence grise on that front: first vice foreign minister Kang Sok-ju, who negotiated the 1994 Agreed Framework with the US. It was Kang whom the current US special envoy on North Korea, Stephen Bosworth, demanded to meet when he visited Pyongyang in December, rather than the North’s main nuclear negotiator Kim Kye-gwan: a more junior deputy foreign minister.

Or is Washington behind the curve? That Kim Yong-il 2 is the DPRK’s new foreign affairs head honcho seemed confirmed on February 23, when he turned up in Beijing and went right to the top: going straight into talks with President Hu Jintao and separately with Wang Jiarui. This flurry of activity suggests two possibilities. Either Kim Jong-il will soon visit China, as he is overdue to do; or North Korea may return to the nuclear Six Party Talks (6PT), which have not met in over a year. Or perhaps both, if we are especially fortunate.

If both Kim Yong-ils are now leading players, perhaps one of them could change his name? That is not a frivolous suggestion. Some DPRK officials do this, for no clear reason. Often the change is small, so this is not a case of deception. Thus Paek Nam-sun, DPRK foreign minister – meaning chief meeter and greeter rather than top negotiator – from 1998 until his death in 2007, was originally Paek Nam-jun. Ri Jong-hyok, who as vice-chairman of the Asia-Pacific Peace Committee (APPC) now handles relations with the South, was Ri Dong-hyok in the 1980s when this writer knew him as head of North Korea’s mission in Paris.

(For completeness, yet another Kim Yong-il was Kim Jong-il’s late half-brother. He died of liver cirrhosis in 2000 aged only 45 in Berlin, where he had a diplomatic posting tantamount to exile – as his elder brother Kim Pyong-il, the DPRK ambassador to Poland, still does.)

Jong and Yong both say sorry

The past month saw both Chairman and Premier Kim doing something almost unheard of in Pyongyang. Apparently they both said sorry, although some reports got the two muddled up.

On February 1 Rodong Sinmun, daily paper of the ruling Workers’ Party of Korea (WPK), reported Kim Jong-il as lamenting his failure to fulfil his late father Kim Il-sung’s pledge, to which he had also alluded shortly before on January 9, that all North Koreans would eat rice and meat soup (everyday fare for even the poorest South Korean, be it noted). This time Kim said: “What I should do now is feed the world’s greatest people with rice and let them eat their fill of bread and noodles. Let us all honour the oath we made before the Leader and help our people feed themselves without having to know broken rice [an inferior version]”.

Given Kim Jong-il’s own notoriety as gourmet and gourmand, his professed “compassion” for his less fortunate subjects’ deprivation may induce queasiness. Yet even this not-quite-apology glosses over the truth. Broken rice? They should be so lucky. As readers of Barbara Demick’s excellent and heartbreaking new book Nothing to Envy will know, rice of any kind – whole or broken – is a rare luxury for most North Koreans. In the late 1990s a million or so starved to death; even today most remain malnourished. One refugee who fled to China saw her first rice in years in the first house she came to – in a dog’s bowl. That is the true reality.

Worse, all this was and is avoidable: the result of stupid and vicious policies, not the natural disasters that the regime blames. The real cause was the government’s failure to adapt in the 1990s after Moscow abruptly pulled the plug on aid. This hurt other ex-Soviet client states too. Cuba went for tourism; Vietnam tried cautious reform; Mongolia sold minerals. North Korea, bizarrely, did nothing – except watch its old system break down and growth plunge.

In a speech at Kim Il-sung University in December 1996, when famine was seriously biting, Kim Jong-il lashed out at the WPK and uttered this petulant but very revealing whinge:

In this complex situation, I cannot solve all the problems while I have the duty of being in charge of practical economic projects as well as the overall economy, since I have to control important sectors such as the military and the party as well. If I concentrated only on the economy there would be irrecoverable damage to the revolution. The great leader told me when he was alive never to be involved in economic projects, just concentrate on the military and the party and leave economics to party functionaries. If I do delve into economics then I cannot run the party and the military effectively.

Evidently Bill Clinton’s famously apt watchword, which helped him win the presidency in 1992, had not breached North Korea’s thick walls and heads. It’s the economy, stupid! The paternal advice was dead wrong. (The full speech can be read on the much-missed Kimsoft website. Unsurprisingly it is not part of the DPRK’s official canon of the dear leader’s works, but the scholarly consensus is that it is genuine. A slightly different version appears here.)

Redenomination disaster

Mass starvation, you might hope, would prompt some soul-searching and fresh thinking. From mid-2002 North Korea did essay cautious market reforms, but recently it has tried to squash Pandora back in her box. The latest such crass effort, a currency redenomination that deliberately wiped out most people’s meagre savings, was discussed in December’s Update.

By all accounts this has backfired badly, sparking runaway inflation (which it was supposed to stanch) and even riots. Forced on the defensive, the regime has issued an unprecedented apology. This being North Korea, it has not done so publicly; there are limits. Nor, in 2010 as in 1996, is Kim Jong-il about to take the rap, despite some newswires confusing J with Y.

But reliable intelligence claims that on February 5 Premier Kim Yong-il called all leaders of neigbourhood groups (inminban) to Pyongyang. The lowest unit in the DPRK’s still tight system of socio-political control, each comprises 20-40 households. This suggests that over 10,000 people heard the premier say what no leader had ever said to them before: sorry. In his words: “I offer a sincere apology about the currency reform, as we pushed ahead with it without sufficient preparation and it caused a great pain to the people… We will do our best to stabilize people’s lives.” The audience’s reaction is not recorded.

The situation on the ground remains confused, but markets appear to be functioning again unhindered. Good Friends, a seemingly well-informed South Korean Buddhist NGO, said on February 18 that after examining a report on food shortages and conditions nationwide by the Office of Economic Policy Review, the WPK Central Committee issued an ‘Order for Absolutely No Regulation Regarding Foodstuffs’. All markets are to reopen as they were before recent government crackdowns, and under no circumstances must local authorities try to regulate food sales – “until central distribution is running smoothly.” There may be a sting in that tail, but for now this is a complete, humiliating government U-turn and climbdown.

This is an astonishing episode, which history may record as pivotal. If the leadership learns its lesson and finally accepts that the market economy is as ineluctable as gravity, then the DPRK might conceivably survive on a reconstituted economic base and social contract, like today’s China or Vietnam. But if Kim Jong-il (or whoever) keeps trying to square the circle, under the delusion that correct politics is a substitute for sound economics, there is no hope.

Sea shells

Relations with South Korea remain an odd blend of sabre-rattling and dialogue. Four times in the past month, starting on January 25 and most recently on February 19, the North has declared a series of no-sail zones for varied time periods. Some of these adjoin two ROK-held islands close to the Northern coast, Baengnyong and Daechong. For three days (January 27-29) the Korean People’s Army (KPA) fired volleys of artillery shells near the Northern Limit Line (NLL): the de facto western sea border since 1953, which the North rejects.

Though no shells actually crossed the NLL, on the first day the South called this provocative and fired back – but again only within its own waters south of the line. By late February, a Southern defence spokesman called the latest shelling “a routine situation that is part of the North’s winter military exercise”, adding that this may go on till the end of March. Routine or not, a report submitted to the ROK National Assembly’s Defence Committee on February 19 said Pyongyang has reinforced its military along the west coast of the peninsula and has strengthened military drills.

Kaesong and Kumgang remain unsettled

The shelling did not stop the Koreas talking about their two joint venture zones just north of the Demilitarised Zone (DMZ). But they got nowhere, beiing far apart on the agenda, format and venue for talks. On the Kaesong Industrial Complex (KIC) – see last month’s Update for more details – the North suggested that the South’s issues – it wants smoother cross-border passage – were best left to military-level talks, which in the past have handled issues relating to the border and security. The South agreed, proposing February 23 at the border village of Panmunjom: the venue for all military meetings hitherto. The North then counter-proposed March 2, at Kaesong; but on February 22 the South said it will insist on Panmunjom, rather than set the precedent of holding a military meeting inside North Korea. With both venue and agenda still in dispute, the chances of progress on the substantive issues looks remote.

Mount Kumgang tours remain suspended

Separately, South Korea with some misgivings accepted the North’s request for talks on resuming tours to the Mount Kumgang resort, suspended since a Southern tourist was shot dead there in July 2008. At the talks held in Kaesong on February 8, North Korea asked for tours to restart from April 1. It breezily declared that the South’s three conditions – a probe into the shooting, efforts to ensure no repetition, and a cast-iron safety guarantee – had been met. But as the North well knows, the South’s key demand is to send in its own investigating team – which the North resolutely refuses. The Northern side proposed continuing the talks on February 12, but the South declined unless the North accepts their three conditions first.

More arms are interdicted

UN sanctions imposed last June after North Korea’s second nuclear test seem to be biting. In February South Africa told the Security Council that in November it inspected a ship headed for the Congo Republic (Congo-Brazzaville). The French owners reported suspicions about cargo they took on in Malaysia from a Chinese vessel. Seizing the containers, South Africa found that what the manifest called “spare parts of bulldozer” were in fact tank components. The shipping agent, and likely origin, is North Korean. China said it will investigate its own vessel’s role in the affair. UN resolution 1874 bans almost all DPRK weapons exports.

More ambiguously, on February 11 Thailand dropped charges against the crew of a plane seized in December and found to contain 35 tonnes of weapons from North Korea, including five crates of Manpads (man-portable air defence systems) which terrorists can use to shoot down aircraft. Next day all five were put on a flight to Almaty. Four are Kazakhs, and their government had asked that they be sent home to be tried. It will be dismaying if they are not.

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Head of Office 39 replaced

Thursday, February 4th, 2010

According to the Guardian:

It is the nerve centre of North Korea’s money-making operations, the department dedicated to raising hard currency for Kim Jong-il while his country teeters on the brink of collapse.

Room 39 is responsible for some legal ventures, such as the country’s limited exports of ginseng and other items. But according to defectors, most of its energy goes into drug-trafficking, sales of weapons and missile technology, and the production of counterfeit US dollar bills.

Today, it was reported the department’s head – Kim Jong-il’s personal finance manager – has been sacked, possibly in response to international action against the alleged illegal moneymaking. South Korea’s Yonhap news agency said Kim Dong-un was dismissed because he had been blacklisted by so many foreign governments, including the EU in December, leaving him unable to travel on behalf of Room 39’s legal companies. He has been replaced by his deputy, Jon Il-chun, Yonhap said, citing an unidentified source.

Housed in an unremarkable government compound in Pyongyang, Room 39 oversees 120 companies and mines, accounting for a quarter of all North Korean trade and employing 50,000 people, according to Lim Soo-ho, a research fellow at the Samsung Economic Research Institute. He said Kim’s dismissal may be part of attempts to get around international sanctions.

While its inner workings remain a mystery to all but its occupants and the family they serve, Room 39’s role in enabling the regime to survive even in times of widespread famine and international pressure, has come under greater scrutiny since the imposition last year of tough UN sanctions over its nuclear programme.

Some of the money generated by Room 39 is used to buy the loyalty of senior party officials, a role that may take on greater prominence as Kim Jong-il, who suffered a stroke in 2008, prepares to hand over power to his third son, Kim Jong-un. Analysts have estimated that illegal activities account for up to 40% of all North Korean trade and an even higher share of total cash earnings.

Additional information: 

1. More on the EU travel ban is here.

2. Office 39 is reportedly located here.  Kim Jong Il’s office is reportedly nearby here.

3. This week the KWP’s finance director, Pak Nam-gi, was also let go.

4. Mike Madden notes the new director’s  appearance with KJI at an “On the Spot Guidance” visit this week.  Mike also points to a possible appearance the Korea Taepung International Investment Group meeting.

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DPRK finance chief sacked over currency revaluation

Wednesday, February 3rd, 2010

According to the Choson Ilbo:

The North Korean regime apparently sacked the Workers’ Party’s Finance Director Pak Nam-gi, letting him take the fall for the failed currency reform late last year. Pak was appointed finance director in July 2007 to oversee North Korea’s economic policies and has spent the past few years trying to root out a nascent market economy.

“Right now, North Korean officials are busy blaming each other for the failed currency reform and Pak, who spearheaded the revaluation, is believed to have been sacked,” said a diplomatic source in Beijing. “Markets have come to a grinding halt following the currency revaluation and prices have soared,” the source said. It seems North Korea hoped to stabilize prices through the currency reform and then credit the achievement to Kim Jong-il’s third son and heir apparent Jong-un to consolidate his grip on power, but this flopped, the source added.

Some North Korea watchers in China predict that the regime may perform a U-turn back to timid market reforms now that Pak, who led the crusade against capitalism, has been fired. One North Korea expert in Beijing said, “There is a strong possibility that high-ranking North Korean officials who led the drive to crush market forces since 2004 will be removed from office, while policies will shift toward market reforms starting in the second half of this year.”

Meanwhile, the new North Korean won is still plummeting against the U.S. dollar. North Korea valued the new currency to 98 won per dollar after the old won weakened to 3,500. But the new won has plunged since last month and is now being traded at between 300 and 500 won per dollar, according to people who trade goods with North Koreans.

According to the Daily NK:

In the tradition of dictatorial regimes worldwide, scapegoats have apparently also been chosen. South Korea’s Chosun Ilbo today claimed that Park Nam Ki, Director of the Planning and Financial Department of the Central Committee, has taken responsibility for the failed redenomination, which initiated a period of hyper-inflation, and been dismissed.

According to the report, Park was appointed to the top economic position in the North Korean government in July, 2005, where he began to pull up the green shoots of spontaneous market economy.

If the news is confirmed, Park will be following in the undesirable footsteps of Ministry of Agriculture head Seo Gwan Hee and Premier Park Bong Ju.

Seo was executed for his role in the 1990s famine. According to defector testimony, Kim Jong Il shifted responsibility for the famine onto him and had him publicly executed in 1997.

Meanwhile, Park Bong Ju became the Premier of the North Korean Cabinet in 2003, the year after the adoption of the July 1st Economic Management Reform Measure, and was responsible for introducing revised market economic elements according to the July 1st Measure. However, results were not sufficient and he was sent to manage the Suncheon Vinylon Complex in South Pyongan Province. 

Lets hope that the jangmadang come back with a vengeance. 

Read the full articles here:
N.Korean Finance Chief Sacked Over Currency Debacle
Choson Ilbo
2/3/2010

Read the full story here:
Ban on Markets lifted
Daily NK
Jung Kwon Ho
2/3/2010

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In North Korea, the military now issues economic orders

Thursday, November 5th, 2009

Blane Harden wrote an excellent article for the Washington Post on the KPA takeover of state-owned trading companies and how these companies are increasing natural resource exports to China.  (As an aside, China has just recently ceased publishing North Korean trade data).  This is interesting because just a year-and-a-half ago we were discussing Jang Song-thaek’s anti-corruption campaign which was supposed to be closing down KPA companies and making them reapply for export licenses with the Ministry of Foreign Trade (meaning the WPK could start dipping into the revenue pools).

Quoting from Mr. Harden’s article:

The potential profits are eye-popping: China is one of the world’s most voracious consumers of raw materials, and North Korea’s mineral reserves are worth $5.94 trillion, according to an estimate by South Korea’s Ministry of Unification. China has been critical of North Korea’s nuclear program and missile tests, but it also has vastly increased its economic ties with Kim’s government.

Kim is increasingly creaming off a significant slice of Chinese mineral revenue to fund his nuclear program and to buy the loyalty of elites, according to “North Korea, Inc.,” a recent report by the United States Institute of Peace, a Washington-based group funded by the U.S. Congress.

The report echoes the views of North Korean analysts in South Korea, Japan and the United States, who say the military has elbowed out other ministries and the Korean Workers’ Party to take control of exports that earn hard currency. The military is also sending trucks to state farms to haul away as much as a quarter of the annual harvest for its soldiers, analysts say.

“The military is by far the largest, most capable and most efficient organization in North Korea, and Kim Jong Il is making maximum use of it,” said Lim Eul-chul of the Institute for Far Eastern Studies in Seoul.

North Korea is perhaps the world’s most secretive and repressive state, but it makes no attempt to hide the ubiquitous role the military plays in the daily lives of the country’s 23.5 million people. Soldiers dig clams and launch missiles, pick apples and build irrigation canals, market mushrooms and supervise the export of knockoff Nintendo games. They also guard the country’s 3,000 cooperative farms, and help themselves to scarce food in a hungry country.

Missile sales were for many years major earners of foreign currency, according to a report for the Strategic Studies Institute by Daniel A. Pinkston, who is now a Seoul-based analyst with the International Crisis Group. But the cost of the arms trade has gone up and sales have declined as a result of U.N. sanctions imposed after the North’s nuclear tests in 2006 and this year, South Korean analysts say.

The military has thus turned to its new Chinese cash cow. As the army has taken over management of mines in North Korea, mineral exports to China have soared, rising from $15 million in 2003 to $213 million last year. Led by those sales, the North’s total trade volume rose last year to its highest level since 1990, when a far more prosperous and less isolated North Korea was subsidized by the Soviet Union.

A unique advantage the Korean People’s Army brings to foreign trade is a well-disciplined workforce that has to be paid — nothing. Soldiers receive food, clothes and lodging, but virtually no cash. This competitive edge makes military-run trading companies especially attractive to the North’s leadership, according to the Institute of Peace report.

Based on confidential interviews with recent North Korean defectors, four of whom said they worked for trading companies run by the military, the paper concludes that a “designated percentage of all revenues generated from commercial activities . . . goes directly into Kim Jong Il’s personal accounts.” The rest of the revenue flows into the operating budget of the military.

The full article is worth reading here.

Additionally, the report by the Institute of Peace cited above, “North Korea, Inc.”, can be downloaded here. The paper is on my reading list this weekend, but here is the introduction and conclusion:

Introduction: Assessing regime stability in North Korea continues to be a major challenge for analysts. By examining how North Korea, Inc. — the web of state trading companies affiliated to the Korean Workers’ Party (KWP), the Korean People’s Army (KPA), and the Cabinet — operates, we can develop a new framework for gauging regime stability in North Korea. Insights into the Democratic People’s Republic of Korea (DPRK)1 regime can be gained by examining six core questions related to the DPRK state trading company system. First, what are DPRK state trading companies and how did they emerge? Second, how do DPRK state trading companies operate? Third, what roles do they play? Fourth, why are DPRK state trading companies important? Fifth, what major transformations are taking place in the DPRK state trading company system? Sixth, what are the implications of the manner in which this system is currently functioning?

Conclusion:  Despite lingering problems with the fragmented Public Distribution System, the challenges of chronic food shortages, and a deteriorating economic infrastructure system, the DPRK regime has proven to be remarkably resilient. By operating North Korea, Inc. — a network of state trading companies affiliated to the KWP, the KPA, and the Cabinet — the regime is able to derive funds to maintain the loyalty of the North Korean elites and to provide a mechanism through which different branches of the North Korean state can generate funds for operating budgets. During periods when the DPRK’s international isolation deepens as a result of its brinkmanship activities, North Korea, Inc. constitutes an effective coping mechanism for the Kim Jong Il regime.

While North Korea remains an opaque country, we now have greater access to unique defectors with the following characteristics — prior experience working in DPRK state trading companies and current business dealings with former colleagues in North Korea through channels in China. By closely examining DPRK commercial activities and capabilities, a new field of North Korea analysis can be structured to produce insights into the internal dynamics of the DPRK regime. This new line of inquiry would help to broaden our understanding of an evolving North Korea.

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“150 Day Battle” production campaign stories

Monday, October 12th, 2009

150-speed.jpg

Photo by Eric Lafforgue

North Korean claims record production gains through ‘150-day battle’
Institute for Far Eastern Studies (IFES)

NK Brief No. 09-10-12-1
10/12/2009

It has been boasted that North Korea’s ‘150-day Battle’ to boost the economy (April 20-September 16) resulted in record-breaking jumps in DPRK production numbers, and it has been suggested that that by 2012, some enterprises will “attain production numbers higher than the best numbers recorded at the end of the 1980s.” This claim was made by Ji Young-il, the director of the Chosun University Social Science Research Institute, which is run by the pro-Pyongyang “General Federation of Korean Residents in Japan.”

In “Professor Ji Young-il’s Monthly Economic Review: The 150-day Battle and Prospects for Building an Economically Powerful Nation,” an article in the federation’s newspaper, Choson Sinbo, the author wrote, “There are more than a few enterprises that have set production goals for 2012 at more than three times the current level of production.” He also claimed that some enterprises in the mining, energy and railroad transportation sectors had set goals of as much as 6 times today’s production numbers.

Professor Ji went on to write, “Basically, it is an extraordinary goal ensuring growth of 1.3-1.5 times (a growth rate of 130-150%) per year.” He also explained that surpassing production rates as high as those seen in the late 1980s is one of the fundamental markers on the road toward “opening the door to a Strong and Prosperous Nation.”

Citing North Korea’s “Choson Central Yearbook,” he gave production numbers in various sectors of the DPRK economy at the end of the 1980s: electricity, 55.5 billion kWh (1989); coal, 85 million tons (1989); steel, 7.4 million tons (1987); cement, 13.5 million tons (1989); chemical fertilizer, 5.6 million tons (1989); textiles, 870 million meters (1989); grain, 10 million tons (1987).

Director Ji claimed that during the recent ‘battle’, production in the metals industries was up several times that of the same period in previous years, while energy producers generated several hundred million kWh of electricity, coal production was up 150%, and cement and other construction materials were up 140%. He pointed out that in 14 years of the Chollima movement, beginning in 1957, during which socialist industrialization took place in the North, the yearly average production growth was 19.1%, and he stated that the annual growth of 9 to 10% in industrial production over the past several years was a noteworthy record.

Moving to the agricultural sector, Director Ji also noted that while overseas experts have critiqued this year’s harvest, there has been a definite breakthrough in grain production with land cultivation hitting previously unseen levels over the past several years.

Previous 150-day battle stories below:
(more…)

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No more “communism” in DPRK “constitution”

Sunday, October 11th, 2009

UPDATE 5: Dr. Petrov has some great commentary on the new constitution:

A rough English translation as offered by Northeast Asia Matters in their report here but it mistranslates Article 8 of the Constitution, calling “근로인민의 리익” or “the interests of the workers” as “human rights”, which is not the same.

As for dropping the word 공산주의  or “communism”, indeed is happened in Articles 29 and 40 (Economy and Culture respectively). The mystery is in why Naenara keeps the old English version, where the sensational new Section 2 of Chapter VI “Chairman of the National Defence Commission” is missing?

UPDATE 3: Northeast Asia Matters has posted a copy of the DPRK constitution in English.  Click here to read.

UPDATE 2: A reader has posted the new constitution (in Korean) in the comments section below.  Click here to read. 

UPDATE 1:  From the Wall Street Journal:

The average North Korean doesn’t know the country’s national constitution well, but at least he has a solid excuse: Kim Jong Il keeps the working masses ignorant of the rights that are formally granted them, which include freedom of speech and demonstration. But just because Pyongyang’s constitution is hardly worth the paper it is written on does not mean that alterations to it are beneath notice. For the ruling elite, its preamble and first few articles serve as a broad indication of the regime’s ideological direction.

ORIGINAL POST: According to Reuters:

North Korea has revised its constitution to give even more power to leader Kim Jong-il, ditch communism and elevate his “military first” [Songun] ideology, South Korea’s Unification Ministry said on Monday.

Though there is little doubt over the 67-year-old Kim’s power, secured by his role as chairman of the National Defence Commission, the new constitution removes any risk of ambiguity.

“The chairman is the highest general of the entire military and commands the entire country,” according to a text of the constitution enacted by the reclusive North in April and only now released by the South Korean government.

The chairman is now the country’s “supreme leader”. Though the position had become the seat of power under Kim, the previous constitution in 1998 simply said the chairman oversees matters of state.

But the Unification Ministry said the new charter removes all reference to communism, the guiding ideology when Kim’s father Kim Il-sung founded North Korea — of which since his death in 1994 he has been eternal president.

Often in its place is “songun”, the policy of placing the military first and which has been Kim junior’s ruling principle.

South Korean media quoted an official from the North as saying that it made the change because it felt the ideals of communism are “hard to fulfil”.

The new constitution adds assurances for protecting human rights, even though North Korea has one of the world’s worst records.

Experts on the North’s state propaganda said the military first ideology has helped Kim dodge responsibility for the country’s sharp economic decline by arguing that heavy defence spending was needed to overcome threats posed by the United States.

It has also meant that the bulk of the North’s limited resources have gone into beefing up a million-strong military at the expense of the rest of the population who make up one of Asia’s poorest societies.

According to the Associated Press:

Yang Moo-jin, a professor at Seoul’s University of North Korean Studies, says it is the first time the North’s constitution has mentioned human rights.

“I think they created this clause, mindful of international criticism of their human rights record,” Yang said. “It lacks details, such as how they will respect and protect human rights. I think it’s just a formality.”

The new constitution also defined Kim Jong Il as the country’s highest leader in a clearer term, saying that the chairman of the all-powerful National Defense Commission — Kim’s title — is the nation’s “supreme leader.”

The previous version only said the commission is the country’s highest organization.

The new constitution also dropped references to communism and only mentions socialism.

But Yang said the change does not mean much because the charter of the North’s ruling Workers’ Party, which is considered higher than the constitution, still says its goal is to build a communist nation.

New York Times:

…Analysts saw the changes as signs that one of the last holdouts from the former Communist bloc was trying to improve its international image in an effort to engage the United States and that the ailing Mr. Kim was trying to burnish his legacy.

North Korea revised its Constitution in April when its rubber-stamp Parliament re-elected Mr. Kim as chairman of the National Defense Commission amid uncertainty over his health. But the outside world was kept in the dark about the details of the amendment until Monday, when South Korea released what it called the text of the North Korean Constitution.

The new Constitution defined one of several titles Mr. Kim holds, chairman of the National Defense Commission, as “supreme leader” of the country. Though Mr. Kim has ruled the country as an undisputed leader, the Constitution revision is the first time he has acquired such an official designation since the death of his father, Kim Il-sung, in 1994.

The chairman “oversees the entire national business,” appointing important military figures, ratifying or abrogating treaties with foreign nations, appointing special envoys and declaring states of emergency or war, the new Constitution said.

The government of South Korea declined to comment, saying it was still scrutinizing the changes. But analysts said Mr. Kim was reasserting his rule by stamping his imprint on the Constitution at a time when doubt persisted at home and abroad about his health and his grip on power.

“After he overcame his health crisis, Kim Jong-il revised the Constitution to show that he was in control and was the person the United States must deal with,” said Kim Yong-hyun, a North Korea analyst at Dongguk University in Seoul. “By mentioning human rights and giving up communism, which sounded hollow to his people after the collapse of the Eastern bloc, he is also trying to show that he is a flexible leader sensitive to the changing world order.”

The constitutional revision does little to add to his already absolute grip on power, said Cheong Seong-chang, a senior analyst at Sejong Institute in South Korea. Mr. Kim is already head of the ruling Workers’ Party and the People’s Army. The new Constitution stuck to a socialist system, though it abandoned communism.

But by bringing more portfolios under his National Defense Commission, “Kim Jong-il showed an intention to focus more on the military and foreign affairs” while leaving party matters to Kim Jong-un, the youngest of his three sons, who is reportedly being groomed as his successor, Mr. Cheong said.

North Korea is now ruled by a “Kim Jong-il and Kim Jong-un coalition,” he added.

In 1998, four years after the death of Kim Jong-il’s father, North Korea revised its Constitution to leave the senior Kim’s title, president, “eternally vacant,” dispersing the roles of the presidency to different agencies. That left outside analysts wondering who officially represented the country, though few disputed Mr. Kim’s authority. With the April revision, Mr. Kim has now left no doubt where the power resides both in reality and in document, analysts said.

Read the full stories below:
North Korea drops communism, boosts “Dear Leader”
Reuters
Jon Herskovitz and Christine Kim
9/28/2009

North Korea’s new constitution calls for respecting human rights for first time
Associated Press
9/28/2009

New Constitution Bolsters Kim’s Power
New York Times
Choe Sang-hun
9/28/2009

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The new Majon Hotel

Thursday, August 13th, 2009

UPDATE: With a big hat tip to Korea Beat, I have located the new Majon Hotel in North Korea.  See a satellite picture of it here.  Here are some pictures  of the inside c/o the Choson Ilbo.

ORIGINAL POST:

majon.JPG

According to the Choson Ilbo:

North Korea on Monday celebrated the completion of what it has hailed as a “world-class” hotel in the Majon resort area in Hamhung, South Hamgyong Province, North Korean Central Broadcasting reported Tuesday.

The broadcast said the Majon Hotel “is equipped with top-class accommodation and recreation facilities such as an indoor swimming pool, a steam sauna, a public bath, and even a beach resort.”

Although it did not specify the size, the broadcast called the hotel a “creation that illuminates the era of the Korean Workers’ Party,” suggesting it is relatively luxurious.

The completion ceremony was attended by key leaders of the party, the government and the military, including People’s Armed Forces Minister Kim Yong-chun, party Secretaries Kim Ki-nam and Choe Thae-bok, and Prime Minister Kim Yong-il.

In a congratulatory speech, Kim Ki-nam said the hotel was “another proud creation built thanks to leader Kim Jong-il’s love of the people in the military-first era.”

The Majon resort area where the hotel is located is famous throughout North Korea. It has a sandy beach park 6 km long and 50-100 m wide along the east coast and 16 recreational buildings, 13 public buildings, and a boy scout camp — all on an area measuring some 3 million sq. m.

Here is the official KCNA press coverage:

Majon Hotel Completed

Pyongyang, July 28 (KCNA) — Modern Majon Hotel sprang up at the Majon recreation ground in Hamhung City, a good destination of holiday makers.

The hotel has all modern cultural and welfare facilities such as bedrooms of various sizes and styles, restaurants, indoor swimming pool, saunas and bath facilities. It has also a bathing resort. This is another edifice to be proud of in the era of Songun, a product of General Secretary Kim Jong Il’s love for the people as he has always worked hard to provide people with better conditions for their recreation.

A ceremony for the completion of the hotel was held on the spot on Monday.

Present there were Premier Kim Yong Il, Minister of the People’s Armed Forces Kim Yong Chun, Secretaries of the Central Committee of the Workers’ Party of Korea Choe Thae Bok and Kim Ki Nam, department directors of the C.C., WPK, officials concerned and employees of the hotel.

Kim Ki Nam in his speech at the ceremony underscored the need for the staff of the hotel to steadily improve the service so that Kim Jong Il’s boundless love may reach people as quickly as possible.

At the end of the ceremony the participants looked round the interior and exterior of the hotel.

Here is the location of the beach.  Some travelers have been there, but photos of the area remain scarce.  If anyone comes across a photo of the hotel, or can identify the exact location, please let me know.  Parts of the beach and surroundings are still not in high resolution on Google Earth, so this also complicates the discovery of the hotel’s location.

Read the full stories here:
N.Korea Completes ‘Luxury’ Resort Hotel
Choson Ilbo
7/29/2009

KCNA

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Bureau 39 update

Wednesday, August 12th, 2009

Vanity Fair has published a lengthy article about the DPRK’s mysterious Bureau 39 which is allegedly behind a number of illicit activities such as counterfeiting US currency and cigarettes, smuggling drugs and bilking western insurance companies with fraudulent claims. The full article is worth reading here.  (h/t DPRK Studies)

Of immediate interest, here is the supposed location of Bureau 39 just south of the Grand People’s Study House:

bureau39.JPG

Click image to enlarge

Here is a short excerpt:

Hamer’s three-year investigation—code-named Operation Smoking Dragon—began not with supernotes but with counterfeit cigarettes, which were being shipped by freight container from China into California ports by the millions. These, too, says Asher, originated in North Korea, and were the subject of a report by the Coalition of Tobacco Companies, one of whose investigators made an undercover visit, posing as a buyer, to North Korean factories in Pyongyang and the northeastern city of Rajin. These turn out fake Western brands, such as Marlboros, in such quantities that they generate as much as $720 million in gross revenue each year. Hamer set up a number of front operations to get inside the cigarette-smuggling business, and soon had many contacts who dealt with him as if he were a smuggler, too. In the spring of 2004, Hamer and his colleagues were asked by F.B.I. headquarters to see if they could acquire North Korean supernotes. One of Hamer’s best customers, Chao Tung “John” Wu, who eventually pleaded guilty to smuggling counterfeit currency, cigarettes, and narcotics, as well as conspiring to broker a deal for Chinese-made, shoulder-fired missiles, but died before he was sentenced, promised he could supply them with the help of a man who was a frequent visitor to North Korea—Wilson Liu. The notes were so good, Wu said at a secretly recorded meeting, “you can even go to Las Vegas and slide them into the machines—they take them right away.”

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