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Fishing casualties in 2011

Tuesday, December 18th, 2012

Pictured Above: The Orang Odaejin Fisheries Office

According to the Daily NK:

Daily NK has learned that approximately 30 North Korean squid fishing vessels from ports in the provinces of North and South Hamkyung have been lost at sea this year alone, causing more than 120 casualties.

A source from North Hamkyung Province revealed the news to Daily NK on the 18th, explaining that the information came from the ‘2012 Missing Vessels Report,’ a booklet of statistical data compiled by the regional coast guard.

According to the source, the report noted, “Among all the vessels that have engaged in squid fishing this year, more than 30 smaller vessels have been lost, and 122 crew members have been killed or reported missing.”

It is mandatory for fishing vessels to register a crew list before leaving port each day for security reasons. Those vessels that leave port but do not return are classified as lost.

The sea near the Hamkyung port of Odaejin in Eorang County has traditionally been the most popular on the North Korean East Sea coast for squid fishing. However, Jang Keum Chun, who previously operated a shipping company in the Liaoning Province city of Dalian, has had a number of boats in the area since 2007.

This is because Jang is the son of Jang Wool Hwa, who sided with Kim Il Sung during the fight for liberation from Japanese rule. As such, he is said to have received direct permission from Kim Jong Il to begin fishing in the area.

The local fishermen who had been fishing for squid in the region for generations have been progressively forced further and further out by this (plus declining squid stocks throughout the East Sea region), which has put many in grave danger.

The source said, “North Korean fishing vessels only have about 6 to 8Hp, so are easily swayed by strong winds and waves.” When vessels run into trouble, there is little hope of rescue due to inadequate communications equipment and rescue vessels.

North Korea has reportedly been suffering 100 or more casualties in fishing accidents in the region for a number of years.

Read the full story here:
122 Casualties in Race for Squid
Daily NK
Choi Song Min
2012-12-18

Posted in Agriculture, Food, Sea shipping | Comments Closed

DPRK builds new airfield in Kumgang County

Monday, December 10th, 2012

UPDATE: Last week I reported this story in Radio Free Asia.

ORIGINAL POST: In The Armed Forces of North Korea Joseph Bermudez gives a thorough accounting of most of the DPRK’s airfields, airports, highway strips, and air force bases. Since the book was published in 2001, however, it is slightly out of date. This week I found a new North Korean runway in Kumgang County which appears to have been built between 2007-5-21 and 2012-9-22 to replace a disused runway five miles to the south.

Pictured above (Google Earth): I have outlined Kumgang County and show the positions of the old and new runways.

The former runway strip (documented in The Armed Forces of North Korea) is located just a mile north of the town of Kumgang. It appears to have fallen into disuse:

The nearby Kumgang-chon River has eroded a southern portion of the runway. It also appears a small drainage canal has been dug across a central section of the unpaved runway.

The new Kumgang Airfield is more sophisticated:

To begin with, the runway (appx 1km x 70m) is paved.

I was curious as to whether this runway is intended to serve primarily for civilian or military purposes. Evidence in favor of civilian use: The runway is close to Inner-Kumgang. Tourists could conceivably fly to this airport and drive appx 20 km (by road) to the Inner Kumgang Rest House. Tourists could also drive 35km to the Kumgang resort. Additionally, there is already a large North Korean air force base just 20km due north of the new runway in Thongchon County. I am not sure if an Air Koryo IL-62M can take off/land on this new runway, but certainly any of the commuter prop planes that carry tourists on domestic flights should not find it too difficult.

Evidence for military use: As of September, there is yet to be built any infrastructure that would serve as a “civilian” airport terminal or air traffic control tower (I use the word “civilian”, but the KPA Air Force controls all of the DPRK’s airspace). These types of infrastructure can be seen at other North Korean “civilian” airports in Pyongyang, Hamhung, and Samjiyon. It could be that construction is still ongoing. Additionally, the airport is currently protected by a small number of hardened artillery positions (HARTs) located next to the runway. Artillery, however, can be seen at other “civilian” airports in the DPRK as well. Just south of the HARTs we can also see what appears to be some tunneling or excavation work being carried out in the hillside. The purpose of this work remains unclear:

Posted in Aviation, Construction, Military, Tourism, Transportation | Comments Closed

Friday Fun: DPRK cards, inside Air Koryo, images, and more

Friday, December 7th, 2012

NK News gets creative: The innovative and informative NKNews.org is selling goodies this holiday season to fund its operations (I wish I had thought of that). When I saw these playing cards, I laughed out loud:

I think I need these. You can order them here.

Inside Air Koryo: Martyn Williams notified me of this web page put up by tourists that took an aviation tour in the DPRK. Some incredible photos to be seen. Here is just one:

The photo set also includes interior pictures of the “famous” Ilyushin-14 given to Kim Il-sung. UPDATE: The source claims that Stalin gave the plane to Kim Il-sung in 1955, however, as a reader points out, Stalin died in 1953.

Here is a flickr set put up by another member of the group.

Mobile phones: A few days ago, NK News posted a link to these photos taken by Russian tourists to the DPRK. Among the lot was this great photo of North Koreans filming/photographing fireworks in Pyongyang with their mobile phones:

Rodong Sinmun photoshop: Perhaps it is unfair to hold Rodong Sinmun to the highest standards of professional journalism, but if you are going to photo-shop a picture, at least put some effort into it:

Click picture for larger version.

I am unsure why Rodong Sinmun felt compelled to badly photoshop what would otherwise have been a lovely photo. Is it really so hard to get a photo of a girl playing a violin in front of her (very loyal) family?

Rodong Sinmun has inspired me to coin a new word: Frankenphoto. Here is a working definition: When all of the compositional elements of a single photo were originally copied from separate pieces and painfully (badly) rendered together into a new image that at times seems to violate the laws of nature.

Just weird [revised]: Below is a very strange act that appeared on North Korean television. I did not understand it at all. After posting it, however, a reader informs me that is is a knock off of an act that appeared on Soviet Television. The original Latvian actor was named Arkady Raikin (Аркадий Райкин). See video of Raikin here. Wikipedia page here.

In this North Korean version, skip to the 3:26 mark. New characters emerge at 5:26, 7:08, 8:17, 10:06.

Posted in Aviation, Cell phones, Civil society, Transportation, Uncategorized | 7 Comments »

Unification Church to sell Pyeonghwa (Pyonghwa) Motors?

Monday, December 3rd, 2012

Pictured Above (Google Earth): Pyeonghwa Motors Factory in Nampho. Recent additions highlighted in Yellow.

UPDATE 1 (2013-1-22): In a later interview, the head of Pyeonghwa Motors revealed more information on his compan’y relinquishment of Pyeonghwa Motors, and described their future ambitions.

ORIGINAL POST (2012-12-3): According to Yonhap (via Korea Times):

The source said, “As far as I know, Pyeonghwa Motors is seeking to sell its factory in Nampo for about US$20 million in order to end its auto business.”

…

“The (South Korean) president of the auto firm appears to be eyeing the distribution sector” in North Korea, an official at the foundation said, adding the president may move to a new industry after liquidating the auto business. “But nothing has been determined so far,” the official said.

Pyeonghwa Motors president Park Sang-Kwon is widely expected to hold discussions with the North over the business shift during a North Korean visit scheduled for mid-December, to mark the first anniversary of the death of late North Korean leader Kim Jong-il, who died on Dec. 17.

According to the Wall Street Journal:

The North Korean government is a 30% partner in the car manufacturer.

A unit from the church’s business arm spent about $55 million to build the Pyeonghwa factory in Nampo, a port city on North Korea’s west coast about an hour or so outside of the capital Pyongyang. After the factory was completed in 2002, workers there completed partially built cars, in a form called knockdown kits, that were imported from manufacturers in Italy and China.

But the company appears to have rarely been profitable. In 2009, the firm earned about $700,000 from the sale of 650 cars. About $500,000 of that was remitted to its parent operation in South Korea. The South Korean government noted then that it was the first time a South Korea-based company repatriated profits from North Korea.

The Pyeonghwa Motors web page does not contain any information on this development. You can view the web page here (english). The last published press release was on 2011-1-11:

The web page does have production and sales data (if you choose to believe it):

No revenue or profit numbers are given on the web page, but it does mention that the factory’s capacity is 10,000 units per year. If these numbers are correct, in 2011 (the most productive year in terms of output) the factory was only running at approximately 19% capacity.

The Pyeonghwa Motors web page also offers a grand vision of the factory’s future (100,000 unit capacity):

However, as Google Earth satellite imagery shows, this plan has yet to come to fruition.

Previous posts on Pyeonghwa Motors here.

Read the full stories here:
Unification Church to wind up auto venture in NK
Yonhap (via Korea Times)
2012-11-28

End of the Road for North Korean Auto Maker?
Wall Street Journal Korea Real Time
Evan Ramstad
2012-11-27

Posted in Automobiles, Foreign direct investment, Joint Ventures, Manufacturing, South Korea, Transportation | Comments Closed

Rise in popularity of Rajin Port

Friday, November 30th, 2012

Institute for Far Eastern Studies (IFES)
2012-11-30

North Korea has focused on developing Rajin Port, located in the North Hamgyong Province, with the aim of attracting foreign investments.

China and Russia have already secured usage rights to these ports and Mongolia has expressed itsinterest in this endeavor. This indicates a rising popularity and competition to use these ports.

Mongolian parliamentary speaker, Zandaakhuu Enkhbold,met with the DPRK’s Supreme People’s Assembly Chairman and Korean Workers’ Party Secretary Choe Tae Bok on October 19 on his four-day visit to Ulan Bator, the capitol of Mongolia. The officials from both countries agreed on the future possibilities of bilateral trade and cooperation in the fields of information technology and human exchanges. Mongolia is landlocked and expressed interests in cooperating for port leaseswhile Chairman Choe expressed enthusiasm in cooperation in harbor, coal, and mining industries.

The day after the two leaders met, Choson Sinbo, Pyongyang’s mouthpiece in Japan, directly reported on the results of the talk, exposing North Korea’s positive reaction to leasing ports to Mongolians. According to the newspaper, “Rajin Port is the most convenient sea route for Mongolia.”

Mongolia’s and North Korea’s bilateral cooperation on Rajin Port has been received positively as it fits the economic interests of these two countries. For Mongolia, they are interested in exporting coal and other underground resources overseas, as the country is rich in underground resources such as coal, copper, gold, and uranium. However, these resources arecostly to export since Mongolia has to rely on Chinese and Russian railway systems.

Once it is able to obtain lease rights to the Rajin Port, Mongolia should be able to significantly reduce itsshipping costs. Thus far, Mongolia has exported coal mainly to China, but may intend to diversify exports to other countries once it is able to use the port at Rajin.

Furthermore, once freight trains between Hassan in the Far East region of Russia and Rajin begin to operate, it will make it possible for Mongolia to transport coal directly to Rajin Port.

North Korea is most likely to lease Pier No. 2 and Sonbong Port to Mongolia, which are currently not being usedby China or Russia.

More importantly, North Korea is turning to South Korean participation in the development of future Rajin Port development. Choson Sinbo reportedin an article on October 21 (under the title, “Hwanggumpyong and Rason”)that “We (North Korea) sincerely want North and South to cooperate for mutual prosperity through communication and join forces to advance economic cooperation larger than neighboring countries.”

Once inter-Korean relations improve and South Korea joins China, Russia, and Mongolia in the development of Rajin Port, other economic cooperation between these five countries is likely.

Posted in International trade, Mongolia, Rason Economic and Trade Zone (Rajin-Sonbong), Sea shipping, Special Economic Zones (Established before 2013), Transportation | Comments Closed

DPRK ships missile parts to Syria

Wednesday, November 14th, 2012

According to the Korea Herald:

A shipment of graphite cylinders usable in a missile program and suspected to have come from North Korea was found in May aboard a Chinese ship en route to Syria in what appears to have been a violation of U.N. sanctions, diplomats said Tuesday.

South Korean officials seized the shipment of 445 graphite cylinders, which had been declared as lead piping, from a Chinese vessel called the Xin Yan Tai, U.N. Security Council diplomats told Reuters on condition of anonymity.

South Korean authorities stopped the ship at the South Korean port of Busan, the envoys said, adding that the cylinders were intended for a Syrian company called Electric Parts.

South Korean officials informed the Security Council’s North Korea sanctions committee about the seizure on Oct. 24, the envoys said, adding that China had offered to help investigate the circumstances surrounding the incident.

“It appears the cylinders were intended for Syria’s missile program,” a diplomat said.

“China assured us they will investigate what looks like a violation of U.N. sanctions.” Diplomats said the graphite cylinders appeared to be consistent with material usable in a ballistic missile program and that South Korea would investigate the case with China.

The shipment to Syria was arranged by a North Korean trading company, diplomats said. One diplomat said the Syrian company that was to have received the cylinders may be a subsidiary of the North Korean trading firm.

North Korea is barred from importing or exporting nuclear and missile technology under U.N. Security Council sanctions imposed on Pyongyang because of its nuclear tests in 2006 and 2009.

Read previous posts about the DPRK and Syria here.

Read the full story here:
Suspected N.K. missile parts seized en route to Syria
Korea Herald
2012-11-14

Posted in Arms shipment, Illicit activities, International trade, Manufacturing, Military, Sea shipping, Transportation | Comments Closed

Yanbian Haihua Group inks Chongjin port deal (and others)

Monday, September 17th, 2012

Pictured above (Google Earth): Chongjin’s two ports and shipyard

The PRC’s Global Times reports that in addition to use of the Rason Port, another Chinese SOE has taken out a lease/investment deal on the Chongjin Port. According to the article:

The official news website of the Yanbian Korean Autonomous Prefecture in Jilin Province reported on Thursday that the Yanbian Haihua Group inked a deal in Pyongyang on September 1 and established with its counterpart a $7.83 million joint venture company.

Under the deal, Haihua Group holds a 60.46 percent stake while the North Korean side owns the rest, to operate the Chongjin port’s No.3 and 4 wharves for 30 years.

The ports will be capable of processing 7 million tons of cargo a year and be put into use this year.

…

The prefecture’s public relations department and the Yanbian Haihua Group did not comment on the joint venture when contacted by the Global Times yesterday.

Although the Global Times reports a $7.83m price tag, the actual size of the deal appears much larger. According to the Donga Ilbo:

The North Korean regime has received 6.12 million euros ($7.82 million) of rental charges for the 3,180 square-meter (34,229 square-feet) piers and a 4,000 square-meter cargo yard from the Chinese company and paid the money to fund the newly-built joint venture, the newspaper said.

The Chinese company will invest a total of 13 billion won (USD $12m) on developing the port, such as building new equipment and facilities, which accounts for about 60 percent of the entire capital spent on the project.

According to the daily, they have already set up a series of detailed regulations on employment management, profit distribution and the formation of a new board with a goal to raise cargo traffic to one million tons by 2015.

The Yanbian group already spent 60 million yuan ($9.47 million) on manufacturing cranes and building necessary equipment, the newspaper said, and also completed work on stabilizing the 36,000-square meter grounds of the construction site.

They are scheduled to finish manufacturing cranes within the year to begin a full-fledged plan for domestic and international transportation through the port.

Yonhap and the Daily NK reported back in 2010 that this very same Chinese firm had leased the Chongjin Port for exports to South Korea and other parts of China:

The report, citing an anonymous government official from Tumen in China’s far northeast, across the Tumen River from Namyang in North Hamkyung Province, said that the usage rights have been sold to a “Chinese state company, Yanbian Haihua Import-Export Trade Company.”

He predicted, “Yanbian Haihua Import-Export Trade Company will start shipping between Chongjin port and Busan by container ship in September, and will start shipments to southern regions of China soon.”

The anonymous official also revealed that North Korea has agreed to allow the Chinese company to use the railroad between Tumen and Chongjin as part of the deal. The deal, the official said, will “facilitate trade from Tumen,” and added that the Chinese company which inked it is planning to use it to fulfill shipping contracts with three other Chinese companies.

The Chinese company is reportedly investing 10 million Yuan ($1.48 million approx.) in shipping cranes and other construction at Chongjin, and is having 150 freight cars produced to add to 50 already sent.

It would be interesting to know if the fiasco surrounding the Xiyang contract let to a renegotiation of terms of this deal in any way: Either by altering the ownership shares, time horizon, or if greater assurances against ex post expropriation were added. Since the contract is not ever likely to be made public, we may never know.

UPDATE 1 (2012-9-18): The Hankyoreh reports that quite a few ports on the DPRK’s eastern shore are being renovated by the Chinese. According to the article:

North Korea and China will develop 4 or 5 ports in the eastern coastal area of North Korea.
A source in Beijing said on Sept. 17 that it was confirmed through a Chinese government official that “4 to 5 ports in the eastern coastal area of North Korea in locations such as Seon-bong, Rajin, Cheong-jin, Gim-chaek, Dan-cheon, Heung-nam and Won-san are being jointly developed by North Korean and Chinese companies.” The source added that in addition to the two ports that are being developed in Rajin and Chongjin currently, businesses in the two countries are discussing specific conditions for development in the other areas. This is the first time that this information has been confirmed by a Chinese government official.

The Tanchon Port has been featured prominently in the DPRK media. Learn more about it here.

Posted in China, Foreign direct investment, International trade, Sea shipping, Transportation, Yanbian Haihua | Comments Closed

Taedonggang Fruit Processing Factory Railway Line

Friday, September 14th, 2012

Pictured above (Google Earth): The new Taedonggang Fruit Processing Factory Railway Line (in yellow). I previously blogged about this railway line here.

On August 31, KCNA announced “Railway line of Taedonggang Combined Fruit Processing Factory goes operational” and that the opening ceremony was attended by staff from the Ministry of People’s Security (MPS) and Korean People’s Internal Security Forces (KPISF). The KPISF is part of the MPS.

The presence of so many security personnel might seem odd for the opening of a railway line that is intended to provide fruit products to North Korean consumers. However, because this very same railway line connects the Kim family compound in Kangdong with the city of Phyongsong by rail (See above map), the heavy security presence seems understandable. This railway line will be heavily watched.

The interesting (and speculative) takeaway is that it might be the case that security for the Kim family is now under the portfolio of the KPISF and not the State Security Department (SSD, Ministry of State Security, anjon-bowibu), KPA, or Military Security Command.

To learn more about the North Korean security services, check out: Coercion, Control, Surveillance, and Punishment: An Examination of the North Korean Police State by Ken E. Gause.

Below is the complete report featured in KCNA:

Railway Line of Taedonggang Combined Fruit Processing Factory Goes Operational

Pyongyang, August 31 (KCNA) — A new railway line branching into the Taedonggang Combined Fruit Processing Factory went operational with due ceremony on Friday.

The operation of the railway line helps satisfactorily carry fruits and processed goods produced by the Taedonggang Combined Fruit Farm and factories in this area and materials necessary for their management and operation.

Present at the ceremony were officials of the Ministry of People’s Security, servicepersons of the Korean People’s Internal Security Forces, officials concerned, builders and employees of the factory.

At the end of the ceremony the first train carrying fruits to be supplied to Pyongyang citizens left the factory.

Posted in Ministry of Light Industry, Ministry of People’s Security (Criminal Police), National Defense Commission, Railways, Transportation | Comments Closed

Promotion of Foreign Investments into Hwanggumpyong and Other Special Economic Zones

Friday, September 14th, 2012

Institute for Far Eastern Studies

North Korea is exerting efforts in pulling Chinese investments into its special economic zones (SEZs).

On September 7, the 8th Jilin, China-Northeast Asia Investment and Trade Expo was held in Changchun, China as well as the 6th high-level forum for Northeast Asian economic and trade joint venture to promote the joint investment projects of Rason and Hwanggumpyong special economic zones.

At the event, North Korean officials focused on explaining the advantages and favorable conditions for foreign investors, including the joint management committee to be operated by both countries and laws and regulations installed for investment protection.

In the past, North Korea mainly focused on Rason SEZ but this time around, the spotlight was turned to Hwanggumpyong. Chinese officials went on to explain the details of 14.4 square-kilometer Hwanggumpyong SEZ, where five major industries – textiles, modern agriculture, electronics and communications, culture and industrial and trade services – with industry, culture, and service serving as the three major functions of Hwanggumpyong.

Furthermore, the tariff, tax and other benefits will be provided to various industries. The processing trade industry will be exempt from tariffs, and those companies operating for more than ten years will be granted tax exemptions, while those companies contributing to the infrastructure construction, tourism and hotels will be given priority and other favorable conditions. Last year, North Korea only centered its attention to Rason SEZ, with no mentioning of Hwanggumpyong.

Out of the thirty companies that participated at the North Korean exhibit, were from Rason SEZ. These companies represent the successful cases of Rason, recognized for abundant seafood, processed foods, and textile production.

One company from Rason stated, “repair and expansion project for the road connecting Hunchun with Rason will be completed by the end of this year, which will stabilize power supply that can attract more foreign investment from China.” According to a North Korean businessperson, there are 216 companies currently operating in Rason and over 80 percent are joint venture through foreign capital.

Since January 2010, the city of Rason received the designation as the metropolitan city and has improved the business conditions. Foreign companies inviting their business partners from home to Rason became easier, where visas were processed efficiently, as quickly as a day.

There are plans of more briefing sessions for North Korean SEZs to be held in Beijing, later this month. It is planned to be held from September 26 to 27 with over 30 state managed companies and over 100 representatives participating to explain 50 new investment projects.

The invitation of this event reiterated, the purpose of this briefing session was to attract Chinese investment for North Korean companies, for the contribution of economic development and improvement of people’s lives in North Korea.”

Posted in Automobiles, Economic reform, Finance, Fiscal & monetary policy, Foreign direct investment, Hwanggumphyong and Wihwado Economic Zones (Sinuiju), Institute for Far Eastern Studies, Rason Economic and Trade Zone (Rajin-Sonbong), Special Economic Zones (Established before 2013), Transportation | 1 Comment »

The Unification Church in the DPRK

Monday, September 10th, 2012

The Rev. Sun Myung Moon was born between what is now Wonbong-ri and Osong-ri in Jongju City (정주시).

Pictured above (R) is a satellite image of the exact building the DPRK and the Unification Church claim was the birthplace of Rev. Moon. I first blogged about this in 2009. The Google Earth coordinates are 39.683728°, 125.291145°, and you can see a ground level photo of the site here (taken by Unification Church delegation).

The Rev. Moon’s Church, the Unification Church, has made substantial investments in the DPRK.

The Unification Church built the Pothonggang Hotel and Pyongyang Peace Embassy (Google Earth: 39.020134°, 125.717641°) in Phyongchon-guyok, Pyongyang:

See photos of the Pothonggang Hotel and Peace Embassy on the Pyeonghwa Motors web page.

The Unification Church also launched Pyeonghwa Motors in the DPRK.

Pyeonghwa Motors was the first firm allowed to put up billboard advertisements in the DPRK. Here are links to images of most of the billboards: Link 1 (Images also say where they are located), Link 2, Link 3, Link 4, Link 5.

Pyeonghwa Motors has several assets in the DPRK, the status of which remains a bit unknown:

There is of course the Pyeonghwa Motors Assembly Factory in Nampho, which I first identified on Google Earth years ago. It has seen some minor expansion between 2009 and 2011:

You can see a Pyeonghwa Motors advert here which features the factory:

Pyeonghwa Motors also built a gas/petrol station in Pyongyang:

The Google Earth coordinates are 38.996068°, 125.712410°, and you can see photos of the Pyeonghwa Motors Petrol Station here.

Pyeonghwa Motors also has a showroom on Kwangbok Street in Mangyongdae-guyok:

The Google Earth coordinates are 39.026709°, 125.682252°, and you can see photos of the Pyeonghwa showroom here.

The Pyeonghwa Motors web page also advertises an accessory shop in Pyongyang:

The Google Earth coordinates for this shop are 39.039590°, 125.743704°, and you can see photos of the Pyeonghwa Motors Accessories Shop here.

Although this facility is listed as operational on the Pyeonghwa Motors web page, recent tourist video shows that at some point before April 2012 this building has become a humble flower shop (꽃상점):