Archive for the ‘Labor conditions/wages’ Category

Can North Korea embrace Chinese-style reforms?

Thursday, October 28th, 2010

According to China Economic Review:

Could North Korea be saved by Chinese-style reforms? In return for its continued support, China is pushing the rogue state to liberalise its economy, and Chinese firms are making inroads into various sectors, especially infrastructure and mining. Earlier this week, I interviewed Felix Abt, a Swiss business consultant who was appointed managing director of a pharmaceutical joint venture in Pyongyang with a brief to turn around the loss-making company, about his experiences over the last eight years.

How open is North Korea to foreign investment, and how many foreign companies are operating on the ground?

In 1992 the Supreme People’s Assembly adopted three laws allowing and regulating foreign investment — the Foreign Investment Law, the Foreign Enterprise Law, and the Joint Venture Law.

Since then, foreign investors have become active in a variety of industrial and service industries. There are a few hundred foreign-invested companies operating at present, mainly smaller sized ventures ($100,000 to $3 million) and of Asian origin (with China ranking No.1).

There are a few very large foreign investments, mainly in the telecom and cement industries. Western multinationals have been shying away from North Korea for fear of ending up on a sanctions list in the world’s largest economy. BAT sold its highly profitable tobacco factory due to political pressure in Great Britain to a Singaporean company a few years ago.

What sort of person sets up business in North Korea? What sort of industries have arrived and what sectors are not represented?

The domestic market is still very small and limited and and not much growth can be expected in the foreseeable future. So to talk about a promising emerging market at present would be a silly exaggeration.

However, North Korea is a very interesting location for the processing of products from garments to shoes to bags where you send the cloth or the leather and the accessories and they send you the finished products back.

The same goes for the extraction of minerals and metals, abundantly available in North Korea, in which case you would send equipment and get the mining products.

In addition, the manufacturing of low to medium technology items is very competitive and such products are already being made with foreign investment in North Korea from artificial flowers to furniture to artificial teeth. I was involved in making the business plan for the artificial teeth joint venture and know therefore that such products can be manufactured with a much better profit margin than for example in the Philippines where the artificial teeth had been produced before.

A particularly promising industry is IT due to the extraordinary quantity and quality of mathematicians unmatched by other countries. The first and only software JV, Nosotek, has seen remarkable successes within a very short time from its foundation and could become a subject of interest to investors who would never have thought of putting any money in North Korea until now.

How easy is it to do business there? Are most foreigners concentrated in Pyongyang or are they spread around?

It depends on the expectations, on the choice of the local partner and on the expatriate staff a company sends there. You need to thorougly select the most suitable local partner and an expatriate manager that is not only professionally competent but also can adapt to and cope with a demanding business environment.

The success of the pharmaceutical joint venture I was running in the past depended on a fast capacity building of the Korean members of the board of directors, managers and staff. I brought them to China where they visited the first foreign and Chinese invested pharmaceutical JV and I convinced its Chinese octogenarian architect to become a member of our company’s board of directors.

Since he faced very similar problems decades earlier he could convince the North Koreans quite easily why certain things had to be done in a certain way to make the business successful. We visited a great number of pharmaceutical companies, wholesalers, pharmacy chains in China and some of our staff even worked in a Chinese factory for some time.

When I wanted to set up the marketing and sales function I was first told that “companies in the DPRK usually don’t have a sales dept.”. I was asked to send a letter to the cabinet to explain my reasons to get the permit for doing so. The visits in China were surely important eye openers and helped getting things organised like in any other country.

The Korean managers and staff quickly acquired all the necessary skills and were able to run the day to day business (factory, import and wholesale of pharmaceuticals, pharmacies) alone when my term ended as managing director.

Many foreign business people are based in Pyongyang, but there are also many working in different places throughout the country, e.g. near mines in the mountains.

Hu Jintao has urged North Korea to speed up its economic reform, using China as a model. Could North Korea open up in the same way over the next few years?

The Chinese are better informed than the scholar and North Korea expert who recently wrote in the Wall Street Journal that the country’s elite would never agree to reform its economy as they fear the system would then collapse.

Together with the Chinese, I believe the risk of a collapse is much bigger if no reforms are carried out than if there are slow and controlled changes.

Once the economy starts taking off and people’s living standards rise the people will hardly challenge the system and the leadership even though the North Korean people know that South Korea’s economy is much more advanced.

Read the full story here:
Can North Korea embrace Chinese-style reforms?
China Economic Review
Malcolm Moore
9/23/2010

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Leadership compound reconstruction continues

Tuesday, October 26th, 2010

The Daily NK reports that construction is afoot at numerous DPRK leadership compounds.

Residence 15 in the Central District (중앙구역):

The residence is located at 39° 0’56.39″N, 125°44’45.45″E.  The first photo is dated March 23, 2009.  The second is dated December 20, 2009.  The third image is from the Daily NK story overlaid onto Google Earth.

Onpho Spa in Kyongsong County (경성군):
The Daily NK also provides a new image of the elite compound at the Onpho Spa.  Here is the original low resolution image from Google Earth and the new high resolution image:

This compound is located at 41°39’26.91″N, 129°30’29.57″E.  Even though the “before” image is in low resolution, we can see that the compound has been drastically rebuilt.  It bears resemblance to the Sinchon Elite Compound (satellite image here) which also is built on a spa.    Barbara Demick mentioned this facility in her recent Nothing to Envy.

The Daily NK also mentions that here is construction taking place at the leadership compound in Songdowon, north of Wonsan. Satellite image here.

The reconstruction of leadership compounds has been underway for some time.  I blogged about some other projects in February 2009. Read about them here.

Here is the text from the Daily NK story:

An unusual level of remodeling and reconstruction of official buildings and special villas is going on across North Korea, according to sources.

One such source inside North Korea reported today that after demolishing the No. 15 Official Residence, located in vicinity of Kim Jong Il’s current office in Pyongyang, the authorities began construction of a new building in July, a claim which has been confirmed by satellite images.

The No. 15 Official Residence was where Ko Young Hee, Kim Jong Eun’s mother, used to live. The location is linked to Kim Jong Il’s office and other official buildings by underground tunnels fitted with an electronic train. When Kim Jong Eun was a child, he also lived there.

However, the source said he believes that the prime real estate may be undergoing a change of use.

The source also reported that in December, 2009, Kim Jong Eun ordered the destruction of another special villa in Kyungsung, North Hamkyung Province, a place famous for hot springs, and the building of a new conference hall and villa with imported construction materials in its place.

Approximately ten kilometers of road and rail construction has also been going on so that the area can be reached more conveniently, the source added.

According to the source, around 1,200 soldiers have been mobilized alongside residents of Chongjin and Hoiryeong for the work. In addition, each household in the area has had to provide ten buckets of rocks for construction and pay 500 won for their delivery.

Regarding this work, North Korea Reform Radio reported in July, “During construction of Kim Jong Eun’s special villa in Kyungsung, the authorities diverted the flow of a stream flowing through Haonpo-ri in Kyungsung, burying farms and angering residents.”

Reconstruction of another villa and conference hall at the coastal Songdowon Resort in Wonsan, Kangwon Province is also ongoing. This construction is reportedly a gift for Kim Jong Il on the orders of Kim Jong Eun.

The construction consists of two large, circular buildings. One of them has a lot of separate rooms, while the other has just one big hall, according to rumors.

Therefore, the source assumed that the finished building might be a similar to Kim Jong Il’s Seoho Villa, the No. 72 Villa in Nakwon, South Hamkyung, which is rumored to have one room extending 100m below the ground.

A South Korean architect estimates that the construction of the three facilities and railroad will cost a total of around $180 million dollars, an amount which, according to the current international market price of corn, $300/ton, is enough to buy 600,000 tons of corn, enough to feed 2.3 million North Koreans for two months.

According to documents the South Korean military and intelligence authorities provided for submission to a hearing of the Diplomacy, Commerce and Unification Committee of the National Assembly by lawmaker Yoon Sang Hyun, there are 33 luxurious villas in beautiful mountainous areas and along the coasts of North Korea. Since 2008, 13 out of 33 sites have been under maintenance work, according to intelligence.

There are also 28 stations for the exclusive use of Kim Jong Il across North Korea.

In North Korea, in general, around two or three facilities are remodeled per year, but the current degree of widespread construction and remodeling suggests that Kim Jong Eun may be set to use the villas in the future.

On this, an anonymous expert with a national policy institute suggested that it does not portend a scaling back of the Kim family ruling style. “Seeing Kim Jong Eun’s luxurious life pattern,” he said, “he seems set to follow his father’s conventional method of dictatorship.”

You can see satellite imagery of 19 leadership  train stations here.

Read the full sotry here:
Luxury Villa Construction Booming
Daily NK
Kim Tae Hong
10/26/2010

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RoK estimates 150-200,000 political prisoners in DPRK

Friday, October 22nd, 2010

According to Yonhap:

An estimated 150,000-200,000 North Koreans are locked up in their communist country as political prisoners, a senior South Korean official said Friday.

Unification Minister Hyun In-taek did not cite sources, but he said during a parliamentary audit in Seoul that the number is “what we understand currently.”

North Korea is operating six political prison camps, Gu Sang-chan, a lawmaker of the ruling Grand National Party, said during the audit as he asked Hyun about the number of inmates.

People incarcerated in such camps are believed to be political dissidents or those who have been captured and repatriated after fleeing the impoverished communist state.

North Korea denies holding any political prisoners, stressing that there are no human rights abuses. Activists claim that political prisoners are forced to work grueling hours and receive only enough food to keep them alive. No medical care is available.

North Korea has a population of 24 million.

Read the full story here:
Up to 200,000 political prisoners estimated in N. Korea: official
Yonhap
Sam Kim
10/22/2010

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More North Korean workers in Jilin, Liaoning

Monday, October 18th, 2010

According to KBS:

The Yomiuri Shimbun says China’s Jilin Province will hire 100 North Koreans this month to work at a plastic manufacturing plant in Tumen City. The report says their wages will be less than half of what Chinese workers are paid.

Japan’s Asahi Shimbun says China’s introduction of North Korean labor is picking up speed. It says that nearby Dandong City in Liaoning Province has also begun the process of bringing in one-thousand North Korean workers.

Read the full story here:
China Border Cities Hiring NK Workers
KBS
10/18/2010

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North Korea’s cultural life

Friday, October 15th, 2010

Tania Branigan visited Pyongyang for The Guardian and wrote a long article on North Korean culture.  Most of the information is familiar to long-time DPRK watchers, though there were a few nuggets of information I had not heard before.  I have posted these below:

But who knew that The Da Vinci Code was a hit in this strictly controlled city? That Céline Dion is a karaoke favourite? Or that the mass performances are not only a tribute to the leadership and motherland, but the way that many young people find partners?

Few foreigners see this city at all. Around 2,000 western tourists visited last year, plus perhaps 10 times as many Chinese visitors. The expatriate population, excluding Chinese and Russian diplomats, and including children, stands at 150.

There are certainly signs of change here: Air Koryo has new planes and three gleaming airport buses to ferry passengers from runway to terminal. Last week a vast new theatre opened, as did an apartment complex, although it may be destined for officials. The 105-storey Ryugyong hotel – more than two decades in construction – is finally glass-sheathed and due to open in 2012. That year will mark the 100th birthday of the country’s founder, Kim Il-sung. But it is hard to see how it can achieve its pledge to become “a great, powerful and prosperous nation” by then – even given the Stakhanovite industrial efforts lauded in its newspapers.

Pyongyang is lucky: no one is plump, but nor is there noticeable emaciation. Dr Andrei Lankov, associate professor at Kookmin University in Seoul, says the official income in Pyongyang is around 3,000 won a month, but many have ways of making money on the side and – unlike other North Koreans – its residents receive subsistence food rations. Most top those up at markets that are legal though never formally acknowledged (officials insist that “everything is public”). At the turn of the year, the government embarked on currency reforms to eradicate an increasingly independent group of “kiosk capitalists”. But wiping out hard-won savings caused highly unusual public discontent and even, reportedly, unrest.

You can read the full article here:
The cultural life of North Korea
The Guardian
Tania Branigan
10/15/2010

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Latest reunification study puts cost at US$3 trillion

Tuesday, September 14th, 2010

Here is the report (in Korean) on the KFI web page.   Here is that page translated with Google Translate.

The report was also carried in the English language media. 

According to Reuters:

The cost of reunifying the two Koreas, split since shortly after World War Two, would tot up to about 3,500 trillion won ($3 trillion), the Federation of Korean Industries said on Tuesday.

Not one of 20 economists surveyed by the federation expected reunification in the next five years but almost half said it would happen in 10 to 20 years.

Nearly half also said the largest cost associated with reunification would be in efforts to cut the wealth gap between the wealthy South and the impoverished North.

“The costs to minimize the gap between South and North Korea over the long-term are expected to be greater than the initial cost of reunification,” the federation said in its report.

South Koreans earn an average about $19,230 a year while North Koreans earned about $1,065 in 2008, according to South Korea’s Unification Ministry.

Concerns about the costs prompted South Korean President Lee Myung-bak to propose a “reunification tax” last month.

“In the short term the shock to the Korean economy will be great but in the long-term reunification will be positive,” the survey said.

The two Koreas are still technically at war as hostilities in 1950-53 Korean War conflict ended in a truce, not a peace treaty.

Yonhap also covered the report:

Most of the experts also said the divided Koreas will likely be reunified within the next 30 years, according to the survey conducted by the Federation of Korean Industries (FKI), the largest business lobby in South Korea.

The questions raised by the FKI came after President Lee Myung-bak proposed introducing a new “unification tax,” which he said will help lessen the financial burden of reuniting with the communist North.

Of the 20 experts surveyed, 63.1 percent said the reunification of the two Koreas will cost more than that of Germany, about $3 trillion. The amount includes the initial costs of stabilizing the nation following a reunification, but also the costs of eradicating any economic and social disparities between the two Koreas.

Half of the respondents said the country needed to begin discussing ways to pay such enormous costs of reunification, while 20 percent said such discussions must begin immediately.

“It also showed every respondent saw the need for such discussions as no one answered such discussions were unnecessary,” FKI said in a press release.

None of the respondents said the reunification will take place within the next five years, but 95 percent, or 19 out of the people surveyed, said the two Koreas will likely be unified before 2040.

They all agreed the unification with North Korea will be a great burden on the South Korean economy in its near future, but a great opportunity in the long term.

Here are links to previous posts on this topic.

Read the full stories here:
The cost of reunifying Korea? About $3 trillion
Reuters
9/14/2010

Experts say Korean unification will cost over US$3 trillion
Yonhap
9/14/2010

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Number of South Koreans permitted in Kasong zone to increase

Tuesday, September 14th, 2010

According ot the Daily NK:

An official in the Ministry of Unification has revealed that the government is planning to allow an increase in the number of South Korean nationals permitted to overnight within the Kaesong Industrial Complex.

The new standard will allow a 50% increase in South Koreans staying in the Complex, from the current 600 to a maximum of 900, with the new limits set to take effect after the “Chuseok” harvest festival later this month.

Explaining the plan, the official said, “While the restrictions on residing personnel have been in place, fatigue has accumulated and problems have constantly occurred with companies having a great many production and quality errors,” adding, “So we can expect the government to select this course of expanding the number of residing personnel to between 800 and 900 this week.”

“Especially, maintaining production quality during the period of high demand starting in September with the current staffing levels would be difficult,” the official went on, “so companies have requested an increase in staffing levels, and the government has been considering the companies difficulties and requests.”

However, the official stressed that the move doesn’t mean the government is softening its stance in terms of post-Cheonan sanctions measures, saying, “The May 24th Measures will stay in place, and restrictions on new business investment and new investment in existing businesses will continue.”

At the time of the May 24th Measure, the number of personnel permitted to overnight in the Complex was fixed at 550 from its original limit of 1,000, though the real average was only around 500. However, the limit was increased to around 590 in July based, the Ministry of Unification announced at the time, on the “stances of the corporations and (the government’s) experience of running the complex.”

Read the full story here:
Government Plans Kaesong Personnel Change
Daily NK
Chris GReen
9/14/2010

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Kaesong day care center opened, minimum wage raised

Tuesday, September 7th, 2010

Institute for Far Eastern Studies (IFES)
NK Brief No. 10-09-07-1
9/7/2010

Construction on a day-care center for the children of North Korean workers in the Kaesong Industrial Complex (KIC) has been completed, and the center was opened on September 1. The ROK Ministry of Unification released a statement announcing that “a child-care center has been built with the aim of providing care for the children of North Korean female laborers in the KIC and to improve productivity of the industries in the complex.” With the opening of the new center, more than 300 additional children can be cared for, along with the more than 200 children that are currently attending day-care in the complex.

Ground broke on the new facility, with over 3,100 square meters of floorspace, on September 24, 2009, and it took over a year to complete. The real estate was provided by the North, with the South-North Cooperation Fund providing 900 million won for the build. The Kaesong Industrial District Management Committee has turned over the management of the center to the North, and factories in the complex pay approximately fifteen dollars per child per month to send employees’ children to day-care.

In addition, the Kaesong Industrial District Management Committee and the North Korean Central Special Zone Development Guidance General Bureau agreed on August 5 to raise the minimum wage of North Korean workers in the complex by five percent, from 57.881 USD/month to 60.775 USD/month. The raise took effect on August 1 and will need to be reevaluated before July 31, 2011.

Along with the five percent raise in the minimum wage, South Korean companies will gain more control over the hiring process. North and South Korean authorities agreed to strengthen adherence to existing regulations, both on hiring and assigning workers to various positions. Previously, North Korean labor representatives could control work assignments for North Korean workers, but that will be falling under the authority of managers of each business.

According to the guidelines regulating the KIC, North Korean workers will receive a raise of no more than five percent per year, and they have received a five percent raise each year since 2007. North and South have now agreed to continue raises at a rate palatable to businesses in the complex, and to allow South Korean businesses more control over employees.

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Daily NK on the life of a pilot

Friday, August 20th, 2010

Story 2: The Inauspicious Life of Pilots
Daily NK
Yoo Gwan Hee
8/20/2010

…In North Korea, pilots receive top class treatment alongside submariners and the missile corps. They live above the law in many ways. For instance, if a pilot murders someone in society and then returns to their unit, M.P.s cannot arrest them.

While the top choice of middle school graduates is to work in the No.5 Department of the Central Committee of the Party, that which oversees every aspect of Kim Jong Il’s life, pilot is a popular second choice. The primary condition for selection is family background.

Until the 1980s, offspring of normal workers could be selected if they had a good academic record and enough physical strength. However, any person whose family had committed a political crime was excluded. Also, if a family member had sided with South Korea or went missing during the Korean War, they would be excluded, too.

Until this period, the occupation of pilot was deemed to be a dangerous job and children of the elite did not consider it as a career. However, as the economic crisis began in the 1990s, this view changed. Many of the children of elite officials now choose to become pilots.

Currently, pilots still receive ‘special treatment’ in North Korea; however, it is not particularly special any more. Compared to Party officials, who make money in business, the feeling of deprivation which pilots feel has increased a lot.

Pilots are still bound to the state for their living, while the elite increase their wealth and authority through foreign currency earning and market business.

Until the early 1990s, “No. 4 supplies,” which are given to pilots, were free and extras were sold to their families if necessary. Also, since North Korea was worried about the pilots’ mental states, they took care of family issues and distributed supplies to their families once a month.

Even during “The March of Tribulation” in the mid-1990s, normal food distribution was given to families of pilots. However, as the atmosphere in society changed, their stress is increasing. Children of pilots are becoming a target in schools; teachers demand much of pilots’ children first.

Air Force Units receive a relatively good coal supply, however, since the absolute quantity is still lacking, they need to prepare firewood on their own, too. Until the early 1990s, if one or two packs of cigarette, soybean oil, and beer were given to workers on a farm in the surrounding area or a forest ranger, firewood might come in return. However, the times have changed.

Wives of pilots also have to enter the battle. Wives sell distributed supplies to wholesalers or sell them directly in farming villages in the surrounding area.

However, even in the situation where a lot of workers receive not even a single grain of rice from the nation, the supply for pilots is still special. However, since pilots do not have the authority to use it for business and bribery like other officials; their practical standard of living is not very different from a person who sells home appliances in the market.

The biggest stress which North Korean pilots feel is their concern for their old age. Currently in North Korean society, the treatment you receive in active duty and that of the retired are very different.

Until the 1990s, North Korea praised pilots as a “treasure of the nation” and promised them lifelong care. But after 2000, the retired were completely abandoned. The national pension is worth less than a price of one kilogram of corn.

Usually in other countries, the rising generation has more discontent toward the government compared to the mature group, but in North Korea it is the opposite and this is the reason for the phenomenon. When retired, they need to farm or do business in the market, but retirees are short of market experience and strength. Current pilots, observing the lives of their former comrades, cannot feel comfortable about it.

Now we are in an era where even a pilot receiving “top” level treatment from North Korea attempts an escape, and this is not surprising anymore.

Story 1: Pilot Privileges Fade into History
Daily NK
Yoo Gwan Hee
8/11/2009

…[S]pecial employees, such as air force pilots or submarine captains, belong to a class which is treated as the most exceptional in North Korea (notwithstanding officials or members of elite organizations). Before the start of the 21st century, pilots enjoyed considerable privileges. The North Korean state paid special attention to cultivating pilots, showering them with preferential treatment. Goods provided to pilots and their family members were entirely free and a separate compensation-based ration system applied to the whole group.

So, in the North, the closest thing to a “summer vacation” as enjoyed by the people of the free world would inevitably be the “recreation” of pilots. In North Korea, pilots and their family members were permitted vacation once a year and once every two years, respectively. Submarine captains were entitled to similar terms.

Some of the recreation centers used by pilots and their families include the “Galma Recreation Center” in Wonsan, the “Sokhu Recreation Center” in South Hamkyung Province, and the “Jooeul Recreation Center,” among others. All are located near the ocean, and are unparalleled in terms of scenery. In the case of the Galma Recreation Center, there are two buildings housing bedrooms for the visitors standing side-by-side in a shady area, while a separate dining hall and indoor gymnasium can also be found.

Usually, three to four singles and four to five married households from one unit (regiment level) could use the recreation center at any one time.

Single and family rooms are separate. In the former, there are four single beds and in the latter, two double beds. According to regulations, only two children per family are permitted; those who need to bring three or four children have to work out an arrangement with the management office.

In the centers, there is no designated work, but meals and sleeping times must be strictly kept. Breakfast begins at 7:30 A.M., lunch at 12:30 P.M. and dinner at 6 P.M.; naps can only be taken between 2 and 4 P.M. Bedtime is fixed at 10 P.M. Guests have to strictly adhere to these times.

Besides these restrictions, the visitors have the freedom to spend time as they want. Some people play Chinese chess (janggi) and others cards while the rest may choose to head for the beach.

The menus for the week are displayed next to the windows from which the food is served. Soup and bowls of rice are distributed per person and up to four side dishes are distributed to each table (a table consists of two groups).

Until the early 1990s, the most popular food among those served at the recreation centers was bread made in the former Soviet Union. Every morning, a Russian bread called “Khleb,” on which butter or powdered sugar could be put, was provided. The fruit which was given to each person at lunchtime was also popular with the visitors.

The period of recreation enjoyed by pilots was usually 20 days. However, some families, rather than using up all of their days, left the recreation centers in a hurry to visit parents or relatives in their hometowns. Usually, an additional 15 days of vacation was added unto the 20 recreation days, during which many people take trips to their hometowns.

Some diligent wives would continue to work even while in the centers. Surrounding the Galma Recreation Center, located on the shore of the East Sea, or the Sokhu Recreation Center are heaps of seaweed which are washed ashore with the tides. The wives, after washing the seaweed in the ocean water, dried it on the seashore.

Two or three 50-kg bags are barely sufficient for that much dried seaweed. Wives sent these to their in-laws or families with satisfaction.

However, such extravagant levels of recreation for pilots began to disappear in the mid-1990s with the March of Tribulation. Now, even when the state issues recreation permits, people tend to take off for hometowns, not to recreation centers.

Further, with the decline in the national esteem of pilots in recent years and due to the fact that the items which are provided as rations tend to be sold in the markets for additional income, the luxurious lives of the special class are becoming less impressive all the time. Recently, some pilots have even been selling their cigarette rations (one month’s worth) in the jangmadang.

Corruption also afflicts pilots to no small extent. Schools request additional money and products from the children of pilots, due to the popular image of affluence they command.

The sense of deprivation among pilots and family members, who are supposedly among the most revered people in North Korea, has been growing. Their status has indeed decreased over the years; one cannot ignore the fact that the standard of living of private merchants or foreign currency earners has now outpaced that of pilots, who are dangerously dependent on rations for their survival.

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Lives of DPRK defectors

Wednesday, August 18th, 2010

According to the Korea Times:

Approximately 20,000 North Korean defectors are living in South Korea nowadays. Frankly, this number is not particularly large: in comparison some 689,000 East Germans defected to East Germany between 1961-1989, and the number of defectors/refugees from other Communist countries was also counted in the hundreds of thousands.

North Korean refugees are very dissimilar from the refugees from Eastern Europe who crossed over to the western borders in large numbers during the Cold War.

Until the mid-1990s escape from North Korea was almost impossible, but things changed when North Koreans began to move to China which became the major stopover for nearly all refugees. Now the community of illegal North Korean refugees in China is estimated to be around 30,000-40,000. These people are usually members of the underprivileged social groups who once lived in areas of North Korea which are close to the border with China.

People of the borderland areas began to cross over to China in large numbers in the mid-1990s (an illegal crossing is not difficult since the border rivers are not broad, and also freeze in winter). In the first stage those people were fleeing starvation, but from around 2000, most of them have been attracted by jobs available in China. For most people these jobs would not appear lucrative: in that part of China a construction worker can earn a wage of $80-$90 a month (free accommodation provided), while a humble waitress is usually paid some $50 a month. However, the average salary in North Korea is now about $2-$3 a month, so this income is extremely attractive to poor North Korean farmers.

Of course, crossing to China and working there illegally is not risk-free. Chinese employers might be cheating, refugees are hunted by the Chinese police and if found extradited back to North Korea.

Nonetheless nowadays the punishment of extradited refugees tends be lenient ― by the cannibalistic standards of the North Korean regime, that is. If an extradited refugee can handle a few days of intense beatings and moderate torture without confessing that he or she did something politically dangerous in China ― like contacting Christian missionaries, South Koreans or foreigners ― chances are that the refugee will get away with just a few months of imprisonment.

This situation determines the composition of the refugee community in China. The typical North Korean refugee in China is a middle-aged woman (women outnumber men roughly three to one since it is easier for them to leave the village and reach the border). She has spent all her life working at a farm in a remote North Korean village. At best she might be a primary school teacher or a low level clerk in the local administration. Of course there are elite refugees, but those constitute a small minority.

Most of these people would like to move to South Korea if they are given the opportunity. Such a move is impossible for the vast majority. Contrary to the official rhetoric, South Korean government agencies in China are not excessively eager to help the run-of-the-mill defector (those few who have intelligence or political value might be a different matter).

Nowadays defection is, above all, business, controlled by defection specialists known as “brokers’. If they are paid a fee which currently fluctuates around $2000-$3000 per head but in some special cases might go higher, they can move a person from borderland areas to a third country where they would go to a South Korean consulate or embassy (usually, in Thailand or Mongolia). In third countries (but not in China) South Korean diplomats issue defectors with provisional travel documents and a ticket to Seoul.

The money which is necessary to pay for the broker’s service comes from different channels. In most cases, the sum is provided by a family member who has already reached Seoul. Acquiring this money independently is well beyond the means of the average North Korean refugee in China.

Upon arrival defectors go through a few weeks of debriefing by the South Korean intelligence agencies (admittedly, most of them don’t have much of interest to tell the South Korean authorities). This is followed by three months of readjustment training at Hanawon, a special reeducation facility for refugees. There the new arrivals are briefly lectured on the wonders of liberal democracy as well as provided with somewhat more useful knowledge about foodstuffs available in South Korean shops and the way to pay for a subway ticket in Seoul. Then they are provided with a modest accommodation (heavily subsidized by the government) and some stipend for the initial expenses (the sum varies, but the rough average is around $10,000 per person).

From that moment on, the North Korean refugee starts his or her life in the South. And, as one can easily predict, this life is usually quite difficult. Seoul is a tough place for a former North Korean housewife.

Read the full story here:
Lives of N. Korean defectors
Korea Times
Andrei Lankov
8/15/2010

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