Some enterprising Swedes had some jeans manufactured in North Korea (where they can’t be worn in public) to be sold in the west. The brand name is Noko Jeans.
The fist shipment of appx 1,000 jeans arrived in Sweden on November 11, and the goods will go on sale December 4, 2009.
Here is a photo of the Noko jeans team with their shipment.
Here is a photo of all the official stamps and approvals on the shipment.
IHere is their official web page: http://www.nokojeans.com/
According to Yonhap:
North Korean leader Kim Jong-il has visited a fertilizer factory and a synthetic fabric factory in a northern province and ordered speedy modernization of their facilities, state media said Friday.
Kim’s trip to the Hungnam Fertilizer Complex highlighted his special care for the country’s fertilizer production, as South Korea’s aid of the material, essential for rice and corn farming, remains suspended for the second year. Kim visited the same factory in February.
“The gasification process of the complex is of weighty importance in boosting the fertilizer production,” Kim was quoted by the Korean Central News Agency as saying.
North Korea has developed its own fertilizer production process called “coal gasification.” The process converts coal from a solid to a gaseous state that is similar to natural gas, and can be converted to ammonia that is used to make fertilizer. North Korea has rich deposits of coal and would otherwise have to import natural gas for fertilizer production.
He praised the complex for “entirely depending on locally available raw resources” and emphasized completion of the gasification process “in a brief span of time,” the report said
“He showed such great care as unraveling knotty problems on the spot,” it added.
North Korea’s own fertilizer output is estimated at less than 500,000 tons a year, about a third of the 1.5 million tons the country needs for its grain farming, according to Seoul’s Unification Ministry.
Since 1999, the South Korean government has provided an average 300,000 tons of fertilizer to the North every year to help ease the country’s chronic food shortages. But the aid was suspended after conservative President Lee Myung-bak took office last year, linking inter-Korean aid and exchanges to progress in North Korea’s denuclearization.
Read the full article here:
N. Korean leader visits fertilizer, textile factories
Yonhap
11/6/2009
Institute for Far Eastern Studies (IFES)
NK Brief No. 09-10-26-1
10/26/2009
Companies in the Kaesong Industrial Complex (KIC) are pushing for permission to transport goods manufactured within the complex along the railway running from Kaesong to Sinuiju and the highways connecting Kaesong, Pyongyang, Sinuiju and the Chinese city of Dandong.
Currently, the majority of goods exported from the KIC flow through the South Korean port of Incheon. They are then distributed elsewhere after arriving at the Chinese port of Dalian. This route is expensive and slow. Shipping by sea costs 1,900 USD per container and takes as many as 10 days, while if the railway infrastructure was built up between Kaesong and Sinuiju, both the cost and the time could be significantly reduced.
Seventeen percent of Kaesong goods are exported not only to China, but to Europe, the Middle East and Russia. In the mid- to long-term, Kaesong needs to be connected with Rajin-Sunbong, so that goods can be distributed throughout Russia and Europe via the Trans-Siberian Railway. In order to make this happen, companies within the KIC are seeking to attract foreign joint-ventures and investments while at the same time lobbying North Korean authorities in an effort to convince them of the need for such land transportation infrastructure.
These companies are also pushing for improvements in the highway spanning the 160 km between the KIC and Pyongyang and the injection of KIC goods into the Pyongyang markets, where they could compete with Chinese imports. One part of this effort is promoting the attachment of ‘Made In DPRK’ labels to goods produced in these factories.
It appears that North Korean authorities have been receptive to these ideas, but questions still remain on the logistics of the project. One source has said that the North Korean Central Special Direct General Bureau has shown interest recently in the idea of including KIC goods in the annual Pyongyang International Trade Fair.
On the one hand, the number of North Korean workers in the KIC has now topped 40,000; but on the other hand, given the number and size of the factories in the complex, the factories are about 26,000 workers short of full capacity. The effort to find suitable workers means that now people from Sariwon, Pyongyang and Hamheung have been brought in. Companies in the KIC are adamant that construction of dormitories in the complex needs to be sped up. At the same time, North Korean authorities are demanding that workers be paid according to their level of education, job description, and experience.
For the first time in 13 months, trade between the two Koreas began to rise again. In September 2009, inter-Korean trade amounted to 173.17 million USD, a 2.6 percent rise over the 166.86 million USD recorded in 2008. The economy has shown signs of recovery since last July, and as inter-Korean relations have inched toward improvement, trade has also risen.
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…)
UPDATE 9/16/2009: Despite the downward trajectory that business in the Kaesong Zone seemed to be taking this year, things appear to have bottomed out. According to Yonhap, the Koreas have signed a Kaesong wage increase. According to the article:
South and North Korea agreed to a 5 percent wage hike at a joint industrial park on Wednesday, the Unification Ministry here said, in the latest sign of inter-Korean projects returning to normal.
North Korea earlier demanded a 400 percent raise in monthly wages for its workers at the South Korean-run park in Kaesong, just north of the border.
South Korea’s management office in Kaesong “signed an agreement on a 5 percent wage increase” with its North Korean counterpart, ministry spokesman Chun Hae-sung said in a brief statement.
The North voluntarily withdrew its earlier demand last week in a striking shift from its unyielding attitude in four rounds of negotiations from April to July. The demand called for monthly wages be raised to US$300 from the average $70-80, apparently in retaliation against Seoul’s hard-line policy toward Pyongyang.
The Kaesong park opened in late 2004 as an outcome of the first inter-Korean summit four years earlier. It houses 114 mostly small-sized South Korean firms producing clothing, electronic equipment, kitchenware and other labor-intensive goods with about 40,000 North Korean workers.
The venture is seen as a much-needed source of dollar income for the North, which is currently under U.N. sanctions for its May nuclear test that bans cash flows to the country.
The 5 percent rate hike will increase the minimum wage to about $58 from the current $55.
Separately, North Korea was conducting a door-to-door survey on South Korean businesses at the joint park, said ministry spokeswoman Lee Jong-joo.
North Korea asserted that the two-day survey that continues until Thursday was to examine the firms’ output and “listen to their complaints and difficulties regarding tax and accounting,” Lee said. Such on-site surveys have been done sporadically, she added.
Although tensions might have eased, it remains to be seen whether the business community can be coaxed into making serious capital investments in the DPRK.
Read previous Kaesong Industrial Zone news below:
(h/t DPRK Studies) Erik van Ingen Schenau of the China Motor Vehicle Documentation Centre has posted a collection of photos of vehicles manufactured in North Korea. Check them all out here.
Other links:
1. Background on Sungri Motors here. This is the location of the Sungri Motor Plant.
2. Some background on Pyonghwa Motors here. This is the location of the Pyonghwa Motors plant.
3. I am not sure of the location of Pyongyang Auto Works or the Kamaz (Russian company) factory in Pyongsong.
Institute for Far Eastern Studies (IFES)
NK Brief No. 09-8-13-1
2009-08-13
As North Korea continues to pursue the creation of a Strong and Prosperous Nation by 2012, it is now reportedly building a large-scale construction materials facility to meet expected growth in building demand. North Korean authorities have designated the Daedong River Tile Factory, visited by North Korean leader Kim Jong Il on the 13th of last month, as a large-scale construction materials distribution center, and expect the second stage of its construction to be complete by April 2012.
The Tongil Sinbo, a weekly North Korean publication, printed in its recent (July 18) edition that upon completion of the second stage of construction, the facility would be capable of producing 225 million cubic meters of tiles, shingles, plastic materials and other building supplies. The first stage of construction began in July 2003, and was only recently completed, after five years and nine months, opening on April 15. North Korea is expected to invest 10.5 billion Won (80.77 million USD) into completing the second stage of construction, a considerable investment in light of the troubles facing the North‘s economy.
Upon completion of the facility, taking up more than 225 thousand pyong, it will produce indoor and outdoor tile, polished marble tiles, composite glass tiles and other porcelain and plastic products, as well as pre-fabricated housing components and coal gas. According to the newspaper, it will also house its own electrical generator.
When Kim Jong Il visited the factory, located near the Chollima Steel Complex in South Pyeongan Province, he declared the site to “hold a critical role in the development of the country’s construction industry,” stating that upon completion of the second stage of construction, the factory would serve as a “large-scale base for all modern construction projects.”
North Korea is currently pressing ahead with large-scale redevelopment projects in Pyongyang and other major cities, with one goal being the construction of 100,000 new homes by the year 2012. The Workers’ Party of Korea newspaper, the Rodong Sinmun, has called for all citizens to “make something from nothing” in an effort to build up each region. One point of interest to North Korea-watchers as this massive construction scheme unfolds is that a new position was created to oversee the project, and Kim’s third son, Kim Jong-un, was appointed.
Kim Jong il sets sights on increasing processed food rationing in order to improve the daily lives of the people
Institute for Far Eastern Studies (IFES)
NK Brief No. 09-8-10-1
8/10/2009
North Korean authorities, recognizing that rationing of processed foods is directly linked to the daily lives of the residents of North Korea, are concentrating on a policy of increasing distribution as part of the campaign to build a ‘Strong and Prosperous Nation’ by 2012. The policy calls for the construction of regional food processing facilities throughout the country and using domestic ingredients for all processed foods. In addition, the government plans to undertake diversification of small-scale factories in order to produce soybean paste, soy sauce, cooking oil and other staples, as well as noodles, rice-cake and other foods, all kinds of side dishes, and alcoholic beverages.
This movement was announced in concurrence with Kim Jong Il’s visit to the Samilpo Special Products Factory and Store, both run by the military, on April 7, just two days after the North’s launch of a long-range rocket. This factory, on the bank of the Daedong River, produces over 350 kinds of edibles, including noodles, rice-cakes, oil, sweets, alcoholic drinks, processed meats and fish products. During his visit, Kim Jong Il is said to have stated, “Today, I am happier than during the launch of the Kwangmyeongseong 2,” emphasizing his interest in boosting food production.
On July 15, (North) Korean Central Broadcasting announced the formation of construction offices in Jagang, North Pyongan and other provinces to oversee the building of food production complexes, and the dispatch of “shock troops” to bolster construction efforts.
Recently, the construction of large-scale factories to produce foodstuffs out of each region’s local stock has been pursued in every province in the country. Even at the Cabinet level, a ’Production Workers’ Conference’ was held, bringing together responsible authorities and local production experts to discuss a course for quickly improving services provided to the general population.
In order to effectively implement the North’s policy of increasing rations of foodstuffs, the Standing Committee of the Supreme People’s Assembly issued an order to establish a Ministry of Foodstuff and Daily Necessities Industry.
As North Korea tries to implement this type of measure to boost production and rationing, failure to improve food shortage conditions and economic hardships while at the same time mobilizing the population in a drive to establish a Strong and Prosperous Nation has led to growing outcries among residents. North Korean authorities appear to be introducing these measures in order to placate these complaints.
Institute for Far Eastern Studies (IFES)
NK Brief No. 09-7-22-1
7/22/2009
According to a report released by the Korea Trade-Investment Promotion Agency (KOTRA), mineral products again topped the list of DPRK exports, accounting for 41.3 percent of goods sent out of the country last year. The KOTRA report, “2008 DPRK Trade Trends,” states that the North’s 2008 exports, totaling 1,130,213,000 dollars, increased by 23 percent over the 918.77 million USD-worth of goods exported in 2007.
With the exception of plastic and wooden goods, North Korean exports grew in all areas. Mineral products accounted for 41.3 percent; non-ferrous minerals made up 16.8 percent, textiles accounted for 10.6 percent; chemical plastics made up 7.6 percent; electrical and electronic machinery made up 7 percent; and animal products accounted for 3.6 percent.
Mineral goods were up 33.5 percent over last year, recording sales of 465.44 million USD. This sector has shown continuous growth over the last five years. In 2004, trade in these goods brought in 152.28 million USD; in 2005, 243.66 million USD; in 2006, 244.43 million USD; and in 2007, 349.58 million USD.
Since 2003, North Korea has concentrated on invigorating the light-industrial sector, and has emphasized the export of manufactured goods. However, last year, exports of mineral products and non-ferrous minerals combined to make up a total of 58.1 percent of all exports; the North has been unable to restructure its export sector or satisfactorily boost light-industrial manufacturing.
North Korea’s imports grew as well, to more than twice that of exports. Bringing in goods worth 2,685,478,000 USD, imports grew by 32 percent over the 2.023 billion in imports during 2007. In 2008, mineral products accounted for 25.9 percent of imports; fibers accounted for 11.9 percent; electrical and electronic machinery, 11.5 percent; processed food items, 8.8 percent; chemical and heavy industrial goods, 7.5 percent; and non-ferrous minerals, 6.6 percent. Import of fibers, processed food, and mineral products grew, while the import of animal products, vegetable products and automobiles fell.
Crude petroleum, the North’s largest import item, was imported exclusively from China, and was up 46.9 percent (414.31 million USD) over 2007 (281.97 million USD). However, due to the loss of other sources of fuel, overall imports of crude grew by a mere 1 percent.
Import of grains fell in 2008, recording only 86.24 million USD – a fall of 25.6 percent from the 115.86 million USD in grain imports during 2007. KOTRA explains that due to instability in the grain market, imports from China of rice and barley were halted in April, while corn imports were halted in August.
From YouTube:
(Click on image to see video)
According to the video description:
This was PyongSu’s introduction to donor organisations and individuals that have been purchasing pharmaceuticals abroad and shipped them to North Korea. PyongSu’s promotional presentation explained to them why they should place their orders with PyongSu rather than with pharmaceutical companies abroad.
As PyongSu had no budget to mandate a professional advertising company with the task its managing director Felix Abt made the concept, the script and produced it in-house towards the end of 2005, with the help of North Korean IT and designing students and their Canadian trainer Ian Lee as well as teacher Michael P. Spavor, then giving language courses in Pyongyang, who was the “voice” in this clip. Thus, this unique advertising clip was made in its entirety in Pyongyang (and by people who are not advertising professionals). Check it out and add your comment!
Longer videos on investments in the DPRK can be found here.
