Archive for the ‘Foreign aid statistics’ Category

Korea Economic Institute published new data

Thursday, July 26th, 2007

KEI
May 2007

Link to KEI web site power point presentation.
PDF here:Korea Economic Institute.pdf

Topics covered:

Nominal and Per Capita GNI
Population and Per Capita GNI
GDP Growth
Industrial Structure in 2004 (% of total GDP)
GDP Growth Rates by Industry
North Korea’s External Trade
Trade with Major Trading Partners (2005)
North Korea’s Principal Trade Partners by Year
Inter- Korean Trade
South Korea’s Exports to North Korea By Type
South Korea’s Processing-on-Commission Trade with North Korea

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Inter-Korean Trade Jumps 28.6%

Thursday, July 26th, 2007

Korea Times
Jane Han
7/26/2007

Inter-Korean trade rose 28.6 percent in the first half of 2007 from a year earlier, the country’s leading trade agency said Thursday, attributing the boost to the Gaeseong joint industrial complex and the eased tension between Seoul and Pyongyang.

Trade amounted to $720 million during the January-June period, the Korea International Trade Association (KITA) said.

While South’s exports to the North dropped 9.4 percent to $330 million, imports from the North jumped an impressive 63.3 percent to $390 million.

The trade group credited the big import leap to the expanded number of items produced in the industrial complex located at North Korea’s western border city.

But unlike the positive performance of the two-way trade, the Mt. Geumgang tour business has dropped 7.2 percent.

South Korean companies are currently employing about 15,000 North Korean workers in the Gaeseong complex and the number is expected to rise as the facility undergoes expansion.

Symbolic of the cooperation between the Cold War rivals, the industrial park began construction in June 2003 and its operation started the following year.

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U.N. relief agency considers stepping up food aid to N. Korea: report

Saturday, July 21st, 2007

Yonhap
7/21/2007

A U.N. relief official said North Korea currently receives only a small portion of the food aid it needs and his agency is considering stepping up aid to feed almost 2 million more people, a U.S. government-funded radio station reported Saturday.

In an interview reaching here Saturday through the Korean version of the VOA’s Web site, Robin Lodge, a spokesperson for the World Food Program (WFP), said international relief agencies, including the Office of Food for Peace, recently gathered in Rome, Italy and discussed the possibility of sending the communist state additional food that could feed 1.9 million people there.

Lodge was also quoted by the U.S.-funded broadcaster as saying North Korea currently receives from his agency only about 10 percent of what it needs to feed the 7 million believed to be suffering from starvation.

North Korea does not release any official data on its food situation but many outsiders believe that more than 2 million people died when famine swept through the country in the late 1990s.

Good Friends, a Seoul-based relief group dedicated to North Korea, said in its latest weekly newsletter on Wednesday that a growing number of North Koreans died of starvation or hunger-caused diseases recently, especially in remote areas.

“Famine-driven deaths began to occur across North Korea in late June,” the report said. “In some cities and counties in the provinces of North Pyongan, Ryanggang, Jagang and South and North Hamkyong, the number of deaths is on the increase daily.”

The reports contradict widespread reports that the North’s food situation has improved significantly in recent years.

On Friday, Seoul started sending 50,000 tons of rice aid to North Korea overland as part of its promised loan of 400,000 tons of rice aid.

Over the next five weeks, the South is to deliver 30,000 tons of rice to the North via a road passing through the border town of Kaesong, while another 20,000 tons will be transported across a paved road on the east coast. South Korea is delivering 350,000 tons of rice to the communist country by sea.

South Korea resumed shipping rice aid to North Korea in late June after more than a one-year hiatus, as the North shut down its nuclear facilities in the first step toward eventual nuclear dismantlement.

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Oil Is Shipped to North Korea Under Nuclear Shutdown Pact

Friday, July 13th, 2007

NY Times
CHOE SANG-HUN
7/13/2007

A South Korean ship loaded with 6,200 tons of heavy fuel oil left for North Korea on Thursday under an agreement intended to end the North’s nuclear program.

The United Nations’ chief nuclear inspector said the North was expected to begin shutting down its main nuclear facilities early next week, after four and a half years of operation, during which time enough plutonium was thought to have been produced to make several atomic bombs.

The ship is expected to arrive at Sonbong, a port in northeastern North Korea, on Saturday, the same day a team of inspectors from the United Nations International Atomic Energy Agency is scheduled to arrive in the North to monitor and verify the shutdown.

Mohamed ElBaradei, the director general of the atomic agency, told reporters in Seoul that shutting down five nuclear facilities in Yongbyon, 62 miles north of Pyongyang, the capital, would not be difficult and should be completed “within maybe a month or so.” His agency and North Korea have already agreed on the procedures.

The shutdown would be significant because it would halt the North’s only declared program for producing fuel that can be used in nuclear weapons. The five facilities to be frozen in Yongbyon, including the country’s sole operating nuclear reactor and a radiochemical laboratory, can yield more than 13 pounds of plutonium a year, enough for one atomic bomb, according to experts.

But the steps to be taken after the initial freeze of the nuclear program remain “very much open questions,” Dr. ElBaradei said. Those include whether North Korea will provide the agency with a complete inventory of its nuclear materials, and when it might return to the Nuclear Nonproliferation Treaty.

“It’s going to be a very long process,” he said. “It’s going to be a complicated process. How smoothly the rest of the operation will go very much depends on how progress will be made in six-party talks.”

Chief envoys to the six-nation nuclear talks will meet in Beijing next Wednesday and Thursday, the Chinese Foreign Ministry said. The envoys, gathering for the first talks since March, were expected to discuss moves beyond the reactor shutdown.

North Korea agreed to shut down its Yongbyon facilities in a February agreement with the United States, South Korea, China, Russia and Japan. The deal called for shipping 50,000 tons of fuel oil to North Korea, and South Korea volunteered.

It plans to complete shipping the oil by early August, starting with the installment on Thursday.

North Korea indicated last week that it would undertake the long-delayed shutdown after the first shipment arrived.

When United Nations inspectors return to Yongbyon, they will face the same problems they had faced there before they were expelled in late 2002. They will put in seals, install cameras and leave monitors to ensure that the facilities remain shut. But they will not be allowed to collect samples or access North Korean data, much less travel around the country, to determine how much nuclear material North Korea has produced in Yongbyon or elsewhere.

The five-megawatt reactor in Yongbyon began operating in the mid-1980s. When suspicions about North Korea’s nuclear activities emerged in the early 1990s, a key dispute was how much plutonium had been produced at Yongbyon until then — 90 grams, about 3 ounces, as North Korea reported to the I.A.E.A., or up to 10 kilograms, about 22 pounds, as the agency suspected.

The dispute has never been resolved, although North Korea agreed to suspend operations at Yongbyon in an agreement with the United States in 1994. The accord collapsed in late 2002, when North Korea expelled the United Nations inspectors and restarted the Yongbyon operation.

North Korea has since claimed to have taken spent fuel unloaded from the reactor and reprocessed it into plutonium. Last October, it conducted its first nuclear test.

“It remains an unanswered question: how much plutonium has North Korea so far produced?” said Lee Un-chul, a nuclear scientist at Seoul National University. “North Korea won’t easily give up its operational data.”

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S. Korean group donates medicines to N. Korea

Wednesday, July 11th, 2007

Yonhap
Tony Chang
7/11/2007

A South Korean pharmaceutical association said Wednesday it had provided North Korea with drugs worth about 3 billion won (US$3.25 million) in May in response to a request from the impoverished country.

In February, the North Korean Red Cross Society sent a letter requesting antibiotics, tuberculosis medicine, pneumonia medications, and other basic drugs, the Korea Pharmaceutical Manufacturers Association (KPMA) said.

“Drugs made in the South are precious to us because medicines from China are often fake and not fitting to the North Korean constitution,” the society was quoted as saying in the letter.

The North even requested drugs that have outlived their shelf life, underscoring its urgent need for basic drugs, the KPMA said, adding that it had rejected the request for safety reasons.

In late 2006, the North was hit by an outbreak of scarlet fever, which led to travel bans and school closings, according to reports. The country’s east coast was also reported to have been struck by a series of infectious diseases in January, affecting up to 4,000 people.

North seeks medicine, even if expired for a year
Joong Ang Daily

Kim Young-hoon
7/11/2007

A letter from a Red Cross hospital official in North Korea did not mince words. “We welcome any donation of medicine, even if its expiration date has passed,” the official said.

Moon Kyung-tae, vice chairman of the Seoul-based Korea Pharmaceutical Manufacturers Association, said yesterday the official sent the letter through a civic group, Unification Affairs Research Institute, in February.

The North is willing to take medicine that has expired for up to a year, Moon said, and also was willing to accept responsibility for any problems that might arise.

However, Moon said, “We just cannot do that.”

The association sends about 5 billion won ($5.4 million) worth of medical aid packages to the North every year, but the amount is not nearly enough for what is needed.

In 2005, the South provided support to build pharmaceutical factories in the North, but the facilities could not operate properly due to water and electricity shortages.

The country is extremely vulnerable to epidemics. In October, scarlet fever, which can be treated by taking three pills a day for 10 days, broke out in the North. A significant number of children and the elderly died because they lacked the proper medicine, sources well-informed about the North’s situation said.

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Unification Ministry Lax in North Korean Aid Monitoring

Wednesday, July 11th, 2007

Donga
7/11/2007

When natural hazards like floods occur in North Korea, the South Korean government sends “humanitarian assistance.” But it has turned out that the government failed to monitor whether the emergency relief aid was being used appropriately.

The government spent 221 billion won (229 million dollars) from August last year to June this year to help North Korea repair damage from last July’s flood. But the Ministry of Unification said on July 10 that the after-monitoring of its use has not yet started.

After a massive flood hit North Korea last year, the ministry announced a plan to send relief aid to the North. At that time, the ministry pledged to visit the affected areas from time to time and see whether the sent items are used for the right purposes. The pledge has not yet been delivered.

The items that the government sent to Pyongyang via the Korean Red Cross include: 100,000 tons of rice, 100,000 tons of cement, 5,000 tons of iron reinforcing rods, 210 relief machines, 80,000 blankets, 10,000 emergency kits, and medicines.

“While sending the relief aid, Pyongyang conducted the nuclear test, so we had to stop; assistance was resumed this year. Due to this change in schedule, it was difficult for us to monitor the use of the aid. We will continue to negotiate with the North regarding field monitoring and access to their rationing lists,” said one official at the unification ministry.

However, many think that the monitoring, in effect, will be of no use, since the rationing of the relief aid might have already been finished.

After a railway station explosion had occurred in Ryongchon in North Pyongan Province in April 2004, the ministry also sent relief aid such as rice and cement. But the monitoring was done one year after the delivery, drawing criticism from the public.

Some point out that we should strengthen the monitoring of our rice aid, which is provided in return for Pyongyang’s scrapping of its nuclear program.

Seoul and Pyongyang made an agreement to visit three places on the east coast and two places on the west coast to oversee the allocation of aid whenever Seoul sends 100,000 tons of rice. The World Food Program, however, has an office in Pyongyang and monitors whether North Korean officials are making disproportionate allocations to the military.

In the meantime, the government sent 10 billion won (10.87 million dollars) worth of road paving materials to help proceed with the Mt. Baekdu tour project planned by Hyundai Asan and the Korea Tourism Organization. However, its usage has not yet been confirmed.

A total of 16,000 tons of materials were sent to the North in August 2005 and March 2006, but Pyongyang has not responded since July last year. Currently, the project is on hold.

“To push the project forward, we are contacting the North via several channels. But because there has not been any response from the North, we are having difficulties,” said one unification ministry official.

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Some rice will be sent by rails to Pyongyang

Tuesday, July 10th, 2007

Joong Ang Daily
7/10/2007

South Korea will start sending 50,000 tons of rice aid to North Korea by road next week, as part of its promised loan of 400,000 tons of rice, officials said yesterday.

While 350,000 tons of rice will be delivered by sea, 30,000 tons will be delivered via rail in the west of the Korean Peninsula, and another 20,000 tons will be delivered via an east coast rail line, a Unification Ministry official said.

The two Koreas conducted a historic test of the reconnected railways across the border in mid-May.

South Korea resumed shipping rice aid to North Korea in late June after more than a year’s hiatus, as the North took steps toward nuclear dismantlement. The aid, which consists of 250,000 tons of imported rice and 150,000 tons of domestic rice, will be made over the next five months.

“The rice aid to North Korea via the overland route will be made over five weeks starting next Friday,” the official said.

North Korea is supposed to pay back the $152-million rice loan over 20 years after a 10-year grace period at an annual interest rate of 1 percent.

South Korea resumed shipments of fertilizer and other emergency aid to the North in late March, but withheld the loan of 400,000 tons of rice as an inducement for North Korea to start implementing a landmark agreement reached in the six-nation talks in February.

In early June, inter-Korean ministerial talks ended without tangible results after North Korea protested the South’s decision to withhold rice aid until the North took steps toward nuclear dismantlement.

South Korea suspended all food and fertilizer aid to North Korea after the North conducted missile tests in July.

Resumption of aid was stymied due to the North’s nuclear bomb test last October, but the two sides agreed to put inter-Korean projects back on track in early March. The last rice shipment was made in early 2006.

A poor harvest in 2006, disastrous summer flooding and a 75 percent fall in donor assistance from abroad have dealt severe blows to the impoverished North, according to World Food Program officials.

A recent think tank report said North Korea could run short of up to one-third of the food it needs this year if South Korea and other countries withhold aid. Data from the WFP and the Unification Ministry show that the North will need between 5.24 million tons and 6.47 million tons of food this year.

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Gov’t signs contract with refinery SK for fuel oil aid to N. Korea

Tuesday, July 10th, 2007

Yonhap
Sohn Suk-joo
7/10/2007

South Korea has signed a contract with a local refinery to provide heavy fuel oil to North Korea for shipment next week as part of a multilateral aid-for-disarmament deal, the Unification Ministry said Tuesday.

The contract comes on the heels of international nuclear watchdog monitors preparing for entry into the North next week for verification of the North’s shutdown of its nuclear facilities. Reports also said China is planning to host a fresh round of six-party talks on the North’s denuclearization next Wednesday.

“On Monday, the government signed a contract with SK Energy to provide 50,000 tons of heavy fuel oil to North Korea valued at 22.2 billion won (US$22 million),” Unification Ministry spokesman Kim Nam-sik said. The contract includes transportation fees and insurance premiums.

The first shipment of 6,200 tons will be sent to North Korea next Thursday as part of a six-party deal calling for the communist state to take steps to denuclearize in exchange for economic rewards and other incentives.

The date of delivery, originally set for July 14, has been advanced as North Korea is moving to shut down its main nuclear reactor under the Feb. 13 agreement with South Korea, the United States, China, Japan and Russia. The five regional players have engaged North Korea in the six-party nuclear disarmament talks since 2003.

With the earlier than expected oil delivery, South Korea expects that North Korea will accelerate its process of shutting down its nuclear reactor at Yongbyon, about 90 kilometers north of Pyongyang.

North Korea is entitled to one million tons of heavy fuel oil as a reward for a series of steps to shut down and disable its key nuclear facilities. South Korea is responsible for the first shipment of 50,000 tons.

In late June, working-level officials from the two Koreas agreed on the shipping arrangements. The South Korean portion of the aid should be sent within two weeks. The remaining 950,000 tons, to be split equally between the five parties involved in the six-way talks, will be given when the North takes further steps to disarm.

The cost of the aid is to be shouldered equally by the other nations in the six-party talks. But Japan has vowed not to provide any assistance to the North until the decades-old issue of Japanese citizens abducted by Pyongyang is resolved.

Implementation of the February deal had been delayed pending resolution of a banking dispute over US$25 million of the North’s funds that were frozen in a Macau bank. The issue was resolved in June after the money was transferred to Pyongyang with the help of the U.S. and Russian central banks.

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N. Korea urges Japan to participate in energy assistance

Sunday, July 8th, 2007

Korea Herald
7/8/2007

Japan should refrain from its hostile policy toward North Korea and actively take part in a six-party actions plan to achieve a nuclear-free Korean Peninsula, a pro-North Korean newspaper in Japan said Saturday.

Chosun Sinbo, a pro-North Korean newspaper published in Tokyo, said on Saturday that Japan should be out of the six-party discussions if it continues to avoid the energy assistance program.

Japan, a member of six-party nuclear disarmament talks, is at odds with North Korea over about a dozen Japanese citizens kidnapped by North Korean agents decades ago. Japan refuses to provide any economic aid to the North until the kidnapping issue is resolved.

Under a deal adopted on Feb. 13, North Korea is to receive 1 million tons of heavy fuel oil in exchange for shutting down its key weapons-related nuclear facilities. South Korea is responsible for the first shipment of 50,000 tons.

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S. Korea to contribute US$20 million to WFP to help N. Korea

Monday, July 2nd, 2007

Yonhap
7/2/2007

South Korea said Monday it will provide US$20 million worth emergency food aid to North Korea through the U.N. World Food Program.

The latest South Korean Korean food aid to North Korea through the Rome-based U.N. agency is separate from 400,000 tons of rice it plans to ship to its communist neighbor in the coming months, the Unification Ministry said.

The list and amounts of the South Korean aid, fixed after consultations with the WFP, includes 12,000 tons of corn, 12,000 tons of bean, 5,000 tons of wheat, 2,000 tons of flour and 1,000 tons of powdered milk, the ministry said in a statement.

“We will make efforts to facilitate food aid to North Korea via WFP and improve efficiency through assessment,” it said.

It is the first time since 2004 that South Korea has decided to provide food aid to the North via the WFP. International tension over the North’s nuclear has discouraged South Korea and other countries to help the North.

South Korea resumed shipment of fertilizer and other emergency aid to the North in March. In late June, it sent 10,500 tons of rice to the North as part of its promise last year to help the North recover from flood damage.

South Korea suspended all types of food and fertilizer aid to North Korea after the North conducted missile tests in July and a nuclear bomb test in October. But in high-level talks in March, the two sides agreed to put all inter-Korean projects back on track.

Inter-Korean relations have gotten a new boost from North Korean moves to honor its side of a Feb.13 six-party agreement to denuclearize itself. Last week, it invited back U.N. nuclear inspectors to discuss measures to monitor its planned shutdown of its weapons-related nuclear facilities.

A weak harvest in 2006, disastrous flooding and a 75 percent fall in donor assistance have combined to deal a severe blow to the North’s chronic food shortages, WFP officials said.

According to outside analysts, North Korea’s food supplies may fall one third of its needs this year if South Korea and other countries withhold aid.

Data from the WFP and South Korea’s Unification Ministry show that the North will need between 5.24 million tons and 6.47 million tons of food this year. Depending on the weather, the availability of fertilizer and other factors, the country may only be able to produce 4.3 million tons of food by itself in 2007, the report said.

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