Yonhap
12/28/2007
The total output of a South Korea-built industrial complex in North Korea’s border town of Kaesong totaled over US$180 million this year, shooting up 150 percent from a year ago, Seoul’s Unification Ministry said on Friday.
“The total production by businesses at the Kaesong industrial complex recorded an estimated $185 million this year, up about 150 percent from $74 million last year,” the ministry said in a press release.
Joong Ang Daily
10/23/2007
Regulatory filing requirements to invest in North Korea will be eased, and the Export-Import Bank of Korea will manage information on investment activities in the North, according to a Ministry of Finance and Economy release yesterday.
For an amount below $300,000, an investor will no longer need to hand in an annual financial report to the bank handling the company’s foreign exchange deals for investments in the North.
For an amount below $1 million, an investor will only need to report briefly.
The bank dealing with foreign exchange transactions will need to report the investor’s financial information to the Export-Import Bank of Korea instead of the Ministry of Unification and the Finance Ministry.
Yonhap
10/20/2007
The number of South and North Koreans who made cross-border visits during the first nine months of this year surged over 30 percent as economic, social, cultural and humanitarian exchanges between the Koreas expanded, a government report showed Saturday.
According to the report released by the Unification Ministry, a total of 102,809 people from the two countries made cross-border visits during the January-to-September period, up 33.6 percent from the same period of the previous year.
Of the total that excluded South Koreans who visited the North’s Mount Geumgang, 102,079 were South Koreans going to the North, and only 730 North Koreans visited the South, it added.
Exchanges in the economic sector were most brisk with a total of 69,729 people crossing the border, followed by 9,924 for social and cultural exchanges, and 7,260 for humanitarian purposes, the report showed.
Meanwhile, inter-Korean trade during the nine months amounted to US$1.22 billion, up 12.7 percent from a year earlier, the report noted.
The countries remain technically at war as the 1950-53 Korean War ended with an armistice, not a peace treaty.
Yonhap
10/10/2007
The Unification Ministry has dropped the words “reform and openness” to describe the South Korea-invested industrial park in the North’s border town of Kaesong from its Web site in an apparent bid not to provoke the North.
North Korean leader Kim Jong-il complained in the second-ever inter-Korean summit in Pyongyang last week that South Korea has been using the Kaesong industrial park as a scheme to force reform and openness in the communist North, whereas Pyongyang had gained little from the inter-Korean economic cooperation project.
President Roh Moo-hyun responded by saying in the North Korean capital that North Korea should not be described as a subject of reform and openness.
Yonhap
8/26/2007
South Korea will likely lose 2.2 trillion won (US$ 2 billion) in its food loan to North Korea, because the price was set by international market standards, an opposition lawmaker said Sunday.
Since 2002, South Korea has loaned 2.1 million tons of rice worth 2.86 trillion won to North Korea to help alleviate chronic food shortages in the impoverished communist country.
The loan was offered at international prices at the time of the shipments, although 2.1 million tons of the shipment were homegrown products, whose domestic price is four times higher than international prices, said Rep. Hong Moon-pyo of the Grand National Party.
Citing data from unification and agriculture ministries, Hong said the total monetary value of the South Korean food loaned to North Korea during the period comes to 2.86 trillion won.
North Korea is required to pay back the loan at international market prices, which currently stand at US$380 on the average, the lawmaker said.
“According to the terms of the contract, South Korea will not be able to recover about 2.2 trillion won, so the difference should be offset by taxpayers’ money,” Hong said, adding that the government should unveil the exact amount of the loan and its conditions.
South Korean Ministry of Unification
Serial No.851 (July 30 to August 05, 2007)
Internal Affairs
Inter-Korean Affairs
Foreign Affairs
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
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.
Yonhap
6/11/2007
South Korea will complete shipments of 300,000 tons of fertilizer aid to North Korea late this month, the Unification Minister said Monday.
“As of last week, 233,800 tons of fertilizer had been shipped to North Korea. By June 20, the planned shipments will be completed,” said a ministry official on the usual condition of anonymity.
South Korea resumed shipments of fertilizer and other emergency aid to the North in late March, but it withheld rice aid as an inducement for North Korea to fulfill its promise to shut down its main nuclear reactor as part of the landmark February 13 agreement.
South Korea suspended its food and fertilizer aid to North Korea after the North conducted missile tests in July. Resumption of the aid was blocked due to the North’s nuclear bomb test in October.
According to a recent think tank report, 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 World Food Program and the 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 communist state may only be able to produce 4.3 million tons of food by itself, the report said.
South Korean Ministry of Unification
Exchange of People
Visits to North Korea
During the month of April, the total number of accomplishments for visits to North Korea was 3,281, an increase of 99% from 1,648 in the previous month. It included 3,136 for economic exchanges, 60 for social and cultural exchanges, 81 for humanitarian aid and 4 for family reunion.
The number increased by 222% from 1,019 in April 2006.
The total number of actual visits made during this period was 13,250 an increase of 40% from 9,894 in the previous month. It included 9,886 for economic exchanges, 1,411 for social and cultural exchanges, 1,807 for humanitarian aid and 146 for family reunion.
The number increased by 39.5% from 9,495 during the same period last year.
The total number of Mt. Geumgang tourists during April was 17,805 in 30 trips altogether, an increase of 1.1% from 17,610 in previous month and a 35% decrease from 27,404 during the same period last year.
Contacts with North Koreans
During the month of April, the total number of the accomplishments for inter-Korean contacts was 72, a decrease of 17.2% from 87 in the previous month. It included 46 for economic exchanges, 23 for social and cultural exchanges, 1 for humanitarian aid and 2 for family reunion.
The number increased by 111.8% from 34 during the same period last year.
The total number of actual contacts made during this period was 229, an increase of 1.3% from 226 in the previous month, It included 69 for economic exchanges, 151 for social and cultural exchanges, 2 for humanitarian aid and 7 for family reunion.
The number increased by 218% from 72 during the same period last year.
In April, a total of 178 North Koreans visited to South Korea, including 72 for participating in ITF(International Taekwondo Federation) founding ceremony of Seoul chapter, 72 for Inter- Korean Worker’s Unification Convention on May Day, 32 flight attendants of Koryeo Air.
Inter-Korean Trade
The total volume of inter-Korean trade during April 2007 was $132,869 thousand, showing an 98.5% increase from $66,952 thousand during the same month last year(a 28.8% increase from $103,151 thousand during the previous month).
Trade Type
The total amount of Commercial Transaction were $86,052 thousand (64.8%), showing an 52.9% increase from $56,275 thousand(84.1%) during the same month last year.
The total amount of Non-Commercial Transaction were $46,817 thousand(35.2%), showing an 338.5% increase from $10,677 thousand(15.9%) during the same month last year.
Import & Export Status
Import from North Korea totalled $46,028 thousand, an 51.5% increase from $30,388 thousand during the same month last year(a 21.5% decrease from $58,637 thousand during the previous month).
Agricultural and aquatic products 21
Minerals 19.6
Textile products 28.5
Steel and metal products 18.1
Livlihood supp 4.5
Export to North Korea totalled $86,841 thousand, an 137.5% increase from $36,564 thousand during the same month last year(a 95.1% increase from $44,514 thousand during the previous month).Composition by Items (Unit : %)
Agricultural and aquatic products 48.7
Textile products 8.8
Steel and metal products 7.9
Machineries 16
Electric and products 7.5
The total volume of General Trade during April 2007 was $26,850 thousand ,a 61.9% increase from $16,589 thousand during the same month last year(a 23.9% decrease from $35,265 thousand in the previous month).The volume of import in General Trade was $25,450 thousand, export was $1,400 thousand and had 94.8%, 5.2% each other.
The composition rate by items had a great part of Minerals(33.8%), Agricultural and Aquatic Products(33.1%), Steel and Metal products(29.3%), Electric and Electronic Products(1.5%)
The total volume of Processing-on-Commission Trade during April 2007 was $19,992 thousand, a 38.8% increase from $14,402 thousand during the same month last year.(a 15.4% decrease from $23,629 thousand in the previous month)
The volume of import in Processing-on-Commission Trade was $14,063 thousand, export was $5,929 thousand and had 70.3%, 29.7% each other.
The composition rate by items had a great part of Textiles(79.6%), Electric and Electronic Products(8.8%), Agricultural and Aquatic Products(8.7%)
The total volume of Economic Cooperation Project during April 2007 was $39,210 thousand, a 55.1% increase from $25,284 thousand during the same month last year(a 12.4% increase from $34,881 thousand in the previous month).
The volume of import in Economic Cooperation Project was $6,513 thousand, export was $32,697 thousand and had 16.6%, 83.4% each other.
The composition rate by items had a great part of Machineries(29.0%), Steel and Metal Products(16.2%), Electric and Electronic Products(14.5%), Livelihood supplies(9.2%)
The total volume of Aid to N.K. during April 2007 was $46,815 thousand, a 338.5% increase from $10,677 thousand during the same month last year(a 399.5% increase from $9,373 thousand in the previous month).
The volume of export was $46,815 thousand.
The composition rate by items had a great part of Chemical Products(84.7%), Machineries(8.3%), Plastic rubber and Leather(2.3%), Agricultural and Aquatic Products(1.2%).
Humanitarian Projects
A. Separated Families
Exchange: # of casses(#of people)
Application for contact 9(14)
Address check 2(7)
Reunion 6(25)
Exchange of letters 36
