Articles on current developments, compiled by Tim Beal.
This page also includes
Reports on economic policy and sessions of the Supreme People's Assembly
International training of DPRK officials
Railways, including N-S rail links, ROK rail developments and Trans Siberian Railway
From 1 January 2003 material on the nuclear programme, including KEDO and IAEA, that was previously posted on this page is on the Nuclear Programme page. Old material will be transferred if time permits..
Report: Market ideas taking hold in North
December 30, 2004 ? North Korea is undertaking
small experiments with free market economy
principles that would have been unthinkable a
couple of years ago, the Unification Ministry
said in a new report released yesterday.
The report said that there are now 24-hour
stores operating in Pyeongyang and six to seven
places providing computer access as well. One of
the stores has 100 personal computers, the
report said.
Some stores are selling hamburgers. The report
said that hamburgers first started to appear at
colleges inside North Korea where foreign
culture is spreading faster than other places.
According to the report, about 150 bars and 350
restaurants are operating in the capital
Pyeongyang. Restaurants, cafes, karaoke and pool
halls are running late into the night as long as
there are customers. Lighters embossed with a
restaurant's name are given as small presents to
potential customers.
Unification Ministry officials said that such
trends in North Korean society are against
standard policy.
North Korea generally views too much leisure
time as a threat to the ruling system. It
publicly preaches that "the more free time
people have makes room for individualism which
leads to freedom of consciousness," the report
said.
Pyeongyang citizens are reportedly trying to
barter with store owners when buying goods and
services. The bargaining has giving birth to a
vocabulary only found in societies where a free
market economies exist, read the report.
The ministry report said that such changes are
being conducted while the North Korean regime is
trying to strengthen its ideological education
of citizens.
"In order to make up for the shortage of goods
and provide some flexibility in distribution,
North Korea has introduced free market
influenced economic measures," said a ministry
official, who added that North Korea might
briefly try to control the level of reform but
that eventually it would be hard to change its
overall direction. "The North Korean people have
tasted what it's like to live in a free economy.
Their minds already have started to adopt to
such a change."
by Kang Ju-an
Disturber of Inter-Korean Economic Cooperation
Pyongyang, December 29 (KCNA) -- Economic
cooperation has been vigorously promoted between
the north and south of Korea after the
publication of the June 15 North-South Joint
Declaration. A progress has been made in various
fields -- relinking of railway lines and roads
along the eastern and western coasts nearly
sixty years after their severance, activated
tourism on Mt. Kumgang and start of the Kaesong
Industrial Zone (KIZ) construction.
But the inter-Korean cooperation has been
disturbed by the United States in recent months.
The U.S. is obstructing the KIZ construction
which started in June last year.
The U.S. is going to dispatch more than 20
personnel concerned including the secretary
general of the U.S. side to the Military
Armistice Commission in the U.S. army base in
Ryongsan to the Joint Security Area of Panmunjom
and the demilitarized zone to "approve" and
"permit" the personnel and materials of the
south side going in and out there.
This reveals the heinous intention of the U.S.
to keep the joint security area of Panmunjom and
the demilitarized zone under its control and, at
the same time, to block the north-south
cooperation including the KIZ construction.
The U.S. has hampered its progress in every way
from the very start.
It has strictly controlled money and
electricity, alleging that they could be used
for military purpose. And it has delayed the
construction with an excuse of "investigation",
threatened businessmen not to invest in the
project and hindered the introduction of
equipment and materials by dint of the
unreasonable export law.
In an interview with KCNA, a spokesman for the
Committee for the Peaceful Reunification of the
Fatherland brands the U.S. as a vicious
disturber and a heinous aggressor who is trying
to meddle in and obstruct all the Korean nation
is doing by itself.
A spokesman for the Korean National Economic
Cooperation Federation in a statement called for
determinedly frustrating all the U.S.
obstructions, stressing that if they were
allowed, the Korean nation would be deprived of
the reunification era brought by the June 15
joint declaration and could never escape from a
war disaster.
It is not fortuitous that even south Korean
media said it was none other than the U.S. that
was obstructing the south-north relations and
the U.S. was nervous of seeing the south and the
north might solve the issue of peace and
reunification by themselves.
The Korean nation strongly denounces the U.S.
for blocking the joint economic activities of
the nation while deteriorating the nuclear issue
on the Korean peninsula and keeping the country
divided into two.
[Sanctions]
Modern Greenhouse Farm Built
Pyongyang, December 29 (KCNA) -- A modern
greenhouse farm has been built in the Hwasong
area of Pyongyang, the Democratic People's
Republic of Korea. The farm, which covers
hundreds of thousands of square meters,
cultivates vegetables and flowers in an
industrial way and on the basis of advanced
science and technology. It consists of two kinds
of greenhouses, one using nutritive liquid and
the other using solar heat.
The former is divided into seven plots for
vegetables and three plots for flower plants.
The application of nutritive liquid and
temperature are controlled in a comprehensive
way to suit the features of vegetables and
flowers.
The latter is built with adobe and vinyl sheets.
It keeps warmth inside the greenhouse so that it
can safely produce fruit-bearing vegetables even
in the depth of winter and in early spring.
Kaesong Hospital Chief Hopes to Build South-
North Trust
By Bae Keun-min
Staff Reporter
The first director of a South Korean hospital in
the Kaesong Industrial Complex of North Korea
believes the medical service will help build
trust between the two rivals.
The first ever South Korea-run hospital will be
launched in the Kaesong Industrial Complex next
month with the opening of a first-aid clinic.
``We will provide medical services to workers
from the South when the hospital opens,'' said
Chung Hyun-kee, who was appointed Kaesong
hospital director.
Chung now serves as president of Kosin
University in Pusan.
Semiconductor Parts Maker 2nd Firm in Kaesong
Complex
By Park Song-wu
Staff Reporter
SJ Tech Co., a semiconductor parts manufacturer,
held a dedication ceremony for its new factory
in Kaesong, North Korea, on Tuesday to become
the second firm operating in the inter-Korean
industrial complex, located just north of the
heavily fortified demilitarized zone.
The factory, which currently employs around 70
North Korean workers to produce chip carriers,
plans to enter mass production next month and
employ 200 more workers next year, an SJ Tech
spokesman said.
The company, headquartered in Kyonggi Province,
plans to invest 4 billion won ($3.6 million) in
its Kaesong plant, which the Seoul government
gave approval for in June this year.
The ceremony at the 1,626-pyong (5,375 square
meter) site in the pilot zone of the industrial
park was attended by around 250 people from
South Korea, including Kyonggi Province Governor
Sohn Hak-kyu and Rep. Bae Ki-sun of the ruling
Uri Party.
On Dec. 15, Livingart, a Seoul-based kitchenware
maker, began operations in a factory in Kaesong,
rolling out the first products _ iron pots and
pans _ of the inter-Korean joint economic
project.
In August 2000, Hyundai Asan agreed with North
Korea to develop a 20-million-pyong (66 million
square meter) complex in Kaesong, about 60
kilometers north of Seoul, at a cost of 200
billion won.
The first phase of construction is currently
underway for housing 300 companies, with
completion aimed for 2007.
Through a three-stage development plan lasting
until 2011, Hyundai Asan predicts the Kaesong
park will attract 2,000 companies, mostly from
South Korea, while employing 700,000 North
Koreans and 100,000 South Koreans.
According to the Hyundai Research Institute of
South Korea, the Kaesong project will provide
more than $9.6 billion in economic benefits to
the North and $74.9 billion to the South by
2011.
im@koreatimes.co.kr
12-28-2004 17:35
Gaeseong guidelines simplified for visits
December 28, 2004 ? After reaching an agreement
with Pyeongyang, the Unification Ministry
announced yesterday new regulations now in
effect for visits to the Gaeseong Industrial
Complex in North Korea.
People who want to visit the complex will
receive permission from the two Koreas'
governments within five days; down from the
current 10 days.
Also, those who visit the complex will not have
to present a visitor's report, which was
previously required every time they visited the
complex.
A document to explain the purpose for the visit,
required when applying for multiple visits, will
replace the report.
Unification Ministry officials said, "The
revised regulations will help businessmen do
business there easily. The government will work
to simplify the passage procedures even more."
[Kaesong]
World Federation of Overseas Korean Businessmen
Formed in Moscow
Pyongyang, December 27 (KCNA) -- The World
Federation of Overseas Korean Businessmen was
inaugurated in Moscow on Dec. 18. Korean
businessmen abroad were present at the inaugural
ceremony that day.
At the ceremony the chairman of the
Businessmen's Association of the International
United Confederation of Koreans was elected
chairman of the federation.
Pro-North Korean Economic Federation Established
in Moscow
By Seo Dong-shin
Staff Reporter
A federation of overseas Korean businessmen was
founded on Dec. 18 in Moscow, Russia,
Pyongyang's official news agency reported
Monday.
Although the purpose or the makeup of the
organization was not specified in the report,
experts here presume that the members are likely
pro-Pyongyang Koreans residing abroad,
considering the fact that the chairman of the
industry committee of the International Koryoin
Federation for Unification was elected as its
president. The Koryoin Federation is known as a
pro-North Korean organization centered on ethnic
Koreans in Russia, often called ``koryoin.''
Border crackdown seen in North
December 27, 2004 ? Pyeongyang has launched a
large-scale crackdown on "anti-state activities"
along its border with China, targeting not only
border crossings by North Koreans, but the
smuggling of Chinese goods and South Korean
videotapes into the North, South Korean
intelligence officials said yesterday.
In late November, the North's governing Workers'
Party and law-enforcement authorities jointly
dispatched at least four units of 80
investigators each to the border area, a senior
South Korean intelligence official said. "The
investigation force will stage probes until the
end of January," the official said.
Besides North Koreans crossing into China, the
units are targeting the smuggling of Chinese
goods into the North, particularly mobile
phones, the official said. Also targeted are
videotapes of South Korean TV shows, as well as
pornography from a variety of countries.
Pyeongyang revised its criminal code in April to
have legal grounds to prosecute such trade.
[Economic reform]
Measures for Next Year's Agricultural Production
Discussed
Pyongyang, December 24 (KCNA) -- An enlarged
plenary meeting of the DPRK Cabinet was held in
Pyongyang on Dec. 22 to review the farming this
year and discuss measures for bringing about a
signal turn in agricultural production next
year. The meeting stressed that it is very
important to do farming well next year to
significantly celebrate the 60th anniversaries
of the Workers' Party of Korea and the
liberation of the country and proposed tasks and
ways to do so.
It underscored the need to widely introduce high-
yielding seeds to cultivation, reap a rich
harvest from before and after crops in double-
cropping, successfully cultivate potatoes and
diversify the agricultural structure as required
by the developing reality. It called for
properly choosing crops and their species on the
principle of maximizing the grain production,
decisively increasing the fertility of soil on
paddy and non-paddy fields and actively
introducing new farming methods to rice
cultivation, while conducting sowing and
cultivation as required by the Juche-based
farming method to boost the grain production.
It also stressed the need to widely introduce
efficient modern farm machines to agriculture to
accelerate the industrialization and
modernization of agriculture.
The meeting was attended by Pak Pong Ju, premier
of the DPRK Cabinet, and its members and
officials concerned with agriculture as
observers.
First Model Factory Starts to Operate in Kaesong
Industrial Zone
"Made-in-Kaesong" Goods Shipped to Seoul
A ceremony to commemorate the first product in
the Kaesong Industrial Zone held on Dec. 15.
The first model factory started its operation on
December 15 in the first-phase development
district of the Kaesong Industrial Zone.
The factory was completed in a one million
phyong (one phyong equals to about 36 square
feet) area.
With a floor space of more than 1,000 phyong,
the factory will produce more than 20 kinds of
kitchen utensils through the cooperation of
Koreans in the North and the South.
The 4.5 billion won ($3.8 million) two-story
factory, completed on December 2, was built by
Livingart Co., a kitchenware maker of South
Korea.
Interview with Kim Yong Sul, Vice Minister of
Trade
Key Policy to Develop Economy: Strengthening
Government's Unified Guidance and Transferring
Decision-making Authority to Lower Units
The People's Korea interviewed Kim Yong Sul,
Vice Minister of Trade of the DPRK on
Pyongyang's incentive policy on external trade
investment.
The following is a summary of the interview.
Q: A series of changes seems to have taken place
in the DPRK's economy since the DPRK took
measures to reform its economic management.
Following these changes, favorable conditions
have been created in trade investment.
A: Lower organizations have been authorized to
independently handle economic problems in many
fields, while unified guidance by the government
was strengthened after the economic management
reform was taken.
Vice Trade Minister Kim Yong Sul
The State Planning Commission sets production
quotas for strategic materials and other
important goods to each factory and production
unit, but it gives only money quota to factories
and enterprises which are not engaged in
producing goods. Lots of lower units are
carrying out production plans, using their
originality to the full.
There are detailed regulations concerning how
money is spent, but enterprises can use money
except payment to the government at their
discretion. Enterprises can deal in necessary
materials each other at prices of mutual consent.
[Economic reform]
DPRK Book Co., Choson Sinbo Co. Sign Copyright
Protection Agreement
To Spread Productions of Korean Writers
Worldwide and Protect Copyright of DPRK Writers,
Artists from Piracy
A book company of the DPRK and a media company of the Chongryun (The General
Association of Korean Residents in Japan) recently agreed to jointly promote
the work of protecting the copyright of DPRK works of art. Piracy and
distortion of original DPRK productions and copyrights for them in foreign
countries will be controlled and managed under this agreement. At the same
time, this measure will give a great opportunity for the DPRK to spread its
publications worldwide.
Photo shows a scene of "Chun Hyang-jon," a famous movie in the DPRK. Korean
movies will be also protected by this work from now on.
Conclusion of Agreement
The Choson Sinbo Company of the Chongryun and the Korea Publication Export and
Import Corporation of the DPRK concluded an agreement to jointly promote the
protection of the copyrights for the productions of the DPRK, with the approval
of the DPRK Secretariat of Copyright.
The Secretariat of Copyright was organized in June as a national institution
for control and management of copyrights for DPRK productions.
In Koreas, High Hopes for an Industrial Marriage
By JAMES BROOKE (NYT) 1589 words
Late Edition - Final , Section W , Page 1 , Column 3
DISPLAYING FIRST 50 OF 1589 WORDS - Five miles up a highway from this new break in the barbed wire wall across Korea, visitors may glimpse the peninsula's economic future: the building shells for the first industrial park where North Koreans are to work in South Korean
In Koreas, High Hopes for an Industrial Marriage
Five miles up a highway from this new break in the barbed wire wall
across Korea, visitors may glimpse the peninsula's economic future: the
building shells for the first industrial park where North Koreans are to
work in South Korean factories.
The potency of this marriage between North Korea's rock-bottom wages and
South Korea's capital and technology has so excited Seoul that on Oct. 20
almost a quarter of South Korea's National Assembly members are to travel
by bus to Kaesong, North Korea, to inaugurate the Kaesong Industrial
Park.
About 130 South Korean companies are already on a waiting list to open
factories there, and it is expected eventually to draw billions of
dollars in investments and employ 730,000 North Koreans and 100,000 South
Koreans in more than 1,000 South Korean companies.
A new dynamism could come if South Korea succeeds in developing North
Korea as a huge back office. Companies in the park are to pay a minimum
wage of $57.50 a month, far less than the $100 to $200 typical in China
and $449 in South Korea. Corporate taxes in Kaesong will range from 10
percent to 14 percent, compared with 15 percent in China and 23 percent
to 28 percent in South Korea.
"The biggest advantage is the cheap labor," Lee Soo Young, a director at
the Kaesong Industrial Complex Project.
National Meeting of Officials in Field of
Agriculture Held
Pyongyang, December 23 (KCNA) -- A national
meeting of officials in the field of agriculture
was held here Wednesday. The meeting was
attended by Premier Pak Pong Ju, Vice-Premiers
Kwak Pom Gi, Ro Tu Chol and Jon Sung Hun, and
members of the Cabinet, officials of provincial,
city and county people's committees and
agricultural guidance organs and officials in
the related fields.
Minister of Agriculture Ri Kyong Sik made a
report which was followed by speeches.
Housing Construction in DPRK
Pyongyang, December 23 (KCNA) -- Housing
construction has been extensively carried on in
the Democratic People's Republic of Korea this
year. A large number of dwellings were built in
towns and county seats including Manpho City,
Kim Jong Suk County, Chosan County, Paechon
County and Anak County.
The Party information workers mobilized in the
project of sprucing up the revolutionary battle
sites and historical sites in the Mt. Paektu
area have completed the construction of houses
for more than 500 families in Samjiyon County.
Power Stations Built along Kaechon-Lake Thaesong
Waterway
Pyongyang, December 22 (KCNA) -- Power stations
have been built along the Kaechon-Lake Thaesong
Waterway in South Phyongan Province, the
Democratic People's Republic of Korea. The 150-
kilometer-long natural-flow waterway has been
built from Taegak-ri in Kaechon City to Lake
Thaesong. It saves 140 million kWh of
electricity a year.
Many spots have been chosen as sites of power
stations along the waterway, providing a
foundation for turning out several dozen million
kWh of electricity a year.
Fruitful Year of Land Development
Pyongyang, December 21 (KCNA) -- The Democratic
People's Republic of Korea has made signal
successes in the land development this year.
Hundreds of kilometers of roads and one hundred
and tens of bridges have been built across the
country.
Nearly 1,000-kilometer-long roads have been
improved technically so as to ensure rapid
traffic of vehicles.
More than 700-kilometer-long roads including
streets in Kanggye City and Sunchon-Kaechon
motorway have been paved or repaired.
This year has witnessed achievements in river
improvement projects including constructed or
reinforced dams extending several hundred
kilometers.
Over 480,000 cubic meters of earth have been
removed, about 200,000 square meters of
stonewalls laid, hundreds of thousands of cubic
meters of river beds dug and scores of hectares
of river bank forests created in the projects.
Hundreds of millions of trees have been planted
in tens of thousands of hectares throughout the
country.
Agreements Signed between DPRK and Mongolian Governments
Pyongyang, December 21 (KCNA) -- A trade agreement between the governments of
the DPRK and Mongolia and an agreement on setting up the Inter-governmental
Economic, Trade and Scientific and Technological Consultative Committee were
signed at the Mansudae Assembly Hall Tuesday. Present at the signing ceremony
from the DPRK side were President of the Presidium of the Supreme People's
Assembly Kim Yong Nam, Foreign Minister Paek Nam Sun and officials concerned
and from the Mongolian side President Natsagyn Bagabandi and Foreign Minister
Tsend Munkh-orgil and other suite members.
The agreements were inked by Vice-Minister of Foreign Trade Ri Ryong Nam on
behalf of the DPRK government and Vice-Minister of Industry and Commerce
Tsagaandari Enkhtuvshin on behalf of the Mongolian government.
30 Percent of North Koreans Jobless
By Reuben Staines
Staff Reporter
North Korea is facing growing unemployment as economic reforms force factories
and businesses to shut up shop, according to a report by two U.N. agencies.
The joint report by the World Food Program and the Food and Agriculture
Organization estimated that 30 percent of North Koreans are under- or
unemployed.
The employment rate for women, which was once one of the highest in the world
at 89 percent, is decreasingly particularly quickly, according to the report,
which was released last month following an assessment mission to the North in
September and October.
``An indicator of the magnitude of female unemployment may be that the term
`housewife,' used for unemployed women, has become culturally more
acceptable,'' it said, adding that the term was almost unheard just a few years
ago.
Posco Engineering to build Iran plants
December 22, 2004 ? Posco Engineering &
Construction Co., a unit of Posco, Korea's
largest steelmaker, won an order to build two
power plants in Iran with a combined development
cost of $600 million.
The gas-fired plants in Kermanshah and Yazd will
be started in the first half of 2005, Posco
Engineering said in an e-mailed statement.
KCNA on Achievements in Capital Construction
Pyongyang, December 18 (KCNA) -- The Korean
Central News Agency issued a report Saturday in
which it said that the army and people of the
DPRK have made great achievements in capital
construction over the last decade since leader
Kim Jong Il held high the banner of Songun. The
report says:
In this period signal successes have been made
in the overall construction including the
building of monumental edifices for conveying
the greatness of President Kim Il Sung and his
revolutionary exploits down through generations
and industrial construction.
Epoch-making changes have taken place on this
land even under the most difficult situation
where the people had to make the "Arduous
March," forced march and they were hard pressed
for everything. This steadily added to the
treasure of the country. It is the miracle
unprecedented in the world history.
Pot sales start long road to unify Koreas
The Seonjuk Bridge is the most memorable
landmark in Gaeseong, North Korea. Chung Mong-
ju, a loyal retainer of Goryeo Dynasty, was
killed on the bridge as the power of the 500-
year-old capital waned. The city's tragic
history has been forgotten by many Koreans
today. Blocked by the Demilitarized Zone and
historically shadowed by the Joseon Dynasty, the
presence of Gaeseong feels more like a myth.
When Wang Geon, the founder of Goryeo Dynasty,
established the first unified kingdom on the
Korean Peninsula in 918, Gaeseong was called
"Songak." Its guardian mountain according to the
feng shui is Mount Songak, the mountain of pine
trees and rocks.
The city of Gaeseong had been the auspicious
cradle of Korea's unification for over a
millennium. At the same time, it suffered one of
the most painful experiences in the tragedy of
national division.
Located at the forefront, it was bombed by U.S.
forces in the early days of the Korean War. From
1951 on, the city was devastated by the South by
day and by the North by night.
But the war-torn forgotten capital of the
ancient dynasty has returned to the spotlight as
the site of the joint industrial complex.
Gaeseong kitchen pots, the first product
manufactured at the complex, sold briskly
Thursday at a department store in Seoul.
When former German chancellor Helmut Schmidt was
asked about the lessons of German unification
during his visit to Seoul in the early 1990s, he
said, "Unification comes suddenly. It's
expensive, so be prepared." It was in 1951 when
West and East Germany signed the Berlin
Agreement, which enabled trade between the two
countries. Although unification came 38 years
later, the agreement must have had many
unexpected effects. Since West Germany purchased
East German products and invested in the country
until the fall of the Berlin Wall, unification
requires high costs. The price to pay after
unification is even greater.
It was only three years and four months ago that
the two Koreas agreed to develop a joint
industrial complex in Gaeseong.
The initial construction cost of the complex was
220 billion won ($200 million). We have had a
faster, cheaper start than Germany. However, the
road to Gaeseong is still long.
by Oh Byung-sang
Technical Modernization in DPRK
Pyongyang, December 15 (KCNA) -- An extensive
campaign for retooling existing equipment is
being conducted in different sectors of the
national economy of the Democratic People's
Republic of Korea. Much effort is being directed
to reconditioning generating equipment in hydro-
power stations.
The Suphung Power Station has manufactured and
installed highly efficient turbines of a new
type and improved various kinds of equipment
including stators of generators and oil cooler
of large-size transformer.
The Kanggye Youth Power Station has introduced
new technical inventions into extending the
serviceable life of impellers and raising their
efficiency.
Minor power stations in Jagang and other
provinces have remodeled impellers in a rational
way to generate more electricity with the same
volume of water.
Technical modernization of production processes
are being dynamically accelerated in metal and
machine-building industrial establishments.
The Kim Chaek Iron and Steel Complex has
introduced a new oxygen-blowing method into the
oxygen furnace so as to remarkably shorten the
steel-making time and improve the quality of
steel.
The Hwanghae Iron and Steel Complex has renewed
tundish nozzle of continuous roughing machine to
save a great deal of fuel.
Hundreds of technical inventions have been
introduced into production at the Rakwon Machine-
Building Complex.
The technical modernization is taking place in
chemical industrial establishments, mines and
collieries, too
First Model Factory Commissioned in Kaesong
Industrial Zone
Kaesong, December 15 (KCNA) -- The first model
factory in the one million phyong (one phyong
equals to about 36 square feet) development
district at the first phase of the Kaesong
Industrial Zone (KIZ) has been completed and
commissioned Wednesday. The factory with a floor
space of more than 1,000 phyong will produce
more than 20 kinds of kitchen utensils thanks to
the creative labor of Koreans in the north and
the south.
Present at the commissioning ceremony from the
north side were Ju Tong Chan, director of the
General Bureau for Central Guidance to the
Development of the Special Zone, and other
officials concerned and from the south side
Chairman Hyon Jong Un and President Kim Yun Gyu
of Hyundai Asan, Kim Jae Hyon, president of the
Land Company, businessmen and other persons
concerned.
At the ceremony Hyon Jong Un and Chairman of the
model factory Kim Sok Chol made speeches for the
occasion and representatives from the north side
and the south side made congratulatory speeches.
Hyon Jong Un in her speech said that this
auspicious event in which the first product was
turned out in the KIZ would record a page in
history as it demonstrated to the world the
appearance of the united Korean nation and its
strength guided by the spirit of the June 15
joint declaration. Hyon hoped for positive
assistance and cooperation so that the
construction of the zone, which is underway as a
national and state undertaking, might make
faster and successful progress.
Ju Tong Chan said that the separatists at home
and abroad, displeased with the movement for the
reunification of the country and the north-south
economic cooperation, have worked hard to sap
the great vitality of the joint declaration and
hamstring economic cooperation but they can
never stem the trend of the times when the
Koreans are advancing in the idea of "By our
nation itself". He stressed the need to boost
the inter-Korean economic cooperation and
accelerate the construction of the zone under
the uplifted banner of the joint declaration
with the idea of "By our nation itself" being
its core and thus realize the desire and
expectation of all the fellow countrymen.
Then representatives from the north and the
south cut off the tape for the commissioning of
the factory.
At the end of the ceremony the participants went
round the production processes of the factory
and its trial products.
Kim Jong Il Gives Field Guidance to Steel Complex
Pyongyang, December 15 (KCNA) -- Kim Jong Il,
general secretary of the Workers' Party of Korea
and chairman of the National Defence Commission
of the Democratic People's Republic of Korea,
gave field guidance to the Songjin Steel Complex
which is taking the lead in effecting a great
surge in the production. He first went round the
monument to the field guidance of President Kim
Il Sung and the room devoted to the history of
the complex.
Made in Kaesong' Sold Out in Two Days
By Seo Dong-shin
Staff Reporter
A total of one thousand ``made in Kaesong''
steel pan sets were sold out Thursday, only two
days after they hit the shelves at a department
store in Seoul.
Priced 19,800 won per set consisting of two
steel pans, 480 sets were sold out within two
hours after Lotte Department Store in downtown
Seoul placed them on the stand Wednesday
afternoon. The remaining 520 sets sold out
Thursday, three days earlier than the store had
predicted.
``Some 20 percent of customers bought more than
10 sets,'' a spokesman for the department store
said. ``A customer even bought 50 sets at once,
saying he would distribute them among
`silhyangmin,''' the official added. The term
``silhyangmin,'' refers to those who have lost
their hometown; those who were born in North
Korea but were unable to go back after the
nation's division.
The steel pan sets were the first products
transported to the South from the pilot zone of
the Kaesong Industrial Complex, which is located
just beyond the world's most heavily fortified
border. Produced by Livingart Co., a South
Korean kitchenware company, operating its plant in the complex with 255 North
Korean employees, the pan sets crossed the border on an eight-ton truck
Wednesday.
Unification Minister Chung Dong-young, who just returned from his visit to
Kaesong to celebrate the occasion, bought four sets at the store and sent two
sets of gifts each to former President Kim Dae-jung and incumbent President Roh
Moo-hyun, according to sources.
``While Kim is the one who initiated the Kaesong project, Roh is the one who
got the business on track,'' a Unification Ministry official said, adding the
steel pan sets will therefore make good presents to them.
products from the Kaesong Industrial Complex
Customers line up to buy steel pan sets of Livingart Co., which are the first
products from the Kaesong Industrial Complex to be sold in the South, at Lotte
Department Store in downtown Seoul, Wednesday.
/ Yonhap [photo]
Nuclear issue boils in the pot
The first manufactured goods from the Gaeseong
Industrial Complex were produced yesterday.
Despite the dire situation surrounding the
Korean peninsula due to the nuclear crisis in
the North, the Gaeseong Complex has now become a
new symbol of inter-Korean economic cooperation
with the production of goods there.
Even though the first products were 1,000 sets
of pots, the fact that the goods produced in
Gaeseong were sold in a department store in
Seoul on the same day signals that if North and
South Korea cooperate, it will open an era of
"one-day economic cooperation." It symbolically
shows that this is an opportunity for
coexistence.
Like the Mount Geumgang Tourism project, which
has now stabilized, the Gaeseong Industrial
Complex has made a successful start, and even
though unification appears a long way off, it
will be a chance for people in North and South
Korea to increase their understanding of the
need for unification and will become a catalyst
for change.
[Kaesong]
Gaeseong plant ships goods south
December 16, 2004 ? GAESEONG ? A shipment of
pots, the first batch of North Korean-made
products from the Gaeseong Industrial Complex,
came across the Demilitarized Zone yesterday in
a symbolic step that South Korea hopes will lead
to a long-term economic relationship with North
Korea.
At an opening ceremony, about 180 North Korean
workers dressed in dark blue fatigues operated
machines as 380 South Korean and 50 North Korean
guests looked on. The 4.5 billion won ($3.8
million) two-story factory, completed Dec. 2,
was built by Livingart, a kitchenware maker and
known as Sonoko Cuisineware Inc. in overseas
markets.
Attending the official opening day of
production, South Korea's Unification Minister
Chung Dong-young shook hands with North Korean
workers and encouraged them. Nam Soo-hee, 19, a
female worker from Gaeseong who was packaging
the pots, said, "Thank you. I will do my best."
Hong Ki-chul, 50, working at a molding machine
said, "I am pleased North and South Koreans work
together in the same factory."
In upbeat remarks, Mr. Chung said, "The Gaeseong
Industrial Complex is a symbol of joint
prosperity. The pots Livingart is producing are
pots containing the hope of unification that
dissolves conflicts and produces peace."
[Kaesong]
Marine Resources Propagated in DPRK
Pyongyang, December 14 (KCNA) -- A campaign for
protecting and propagating marine resources is
being conducted in the Democratic People's
Republic of Korea. Fishery stations on the east
coast have built more than 20 cultivation farms
to further increase marine resources.
Sea cucumbers, abalones, sea urchins and mussels
which are under special protection are being
artificially bred in spawning and cultivation
farms
Kaechon-Lake Thaesong Waterway Pays Off
Pyongyang, December 14 (KCNA) -- The Kaechon-
Lake Thaesong Waterway, which was constructed
two years ago, is paying off in irrigating areas
of South Phyongan Province in the western part
of the Democratic People's Republic of Korea.
There are many reservoirs including Lake
Thaesong along its 150-kilometer-long waterway.
When water is stored in the reservoirs to the
full, it makes it possible to do farming
successfully in the granaries of South Phyongan
Province and Pyongyang without worrying about
water.
The River Taedong flows into the reservoirs
through the natural-flow waterway without the
help of electricity.
Water tantamount to the 70 percent of the whole
water volume of the reservoirs has already been
kept there.
The Irrigation Department of the Ministry of
Agriculture and the Kaechon-Lake Thaesong
Waterway Management Station are managing well
the Taegak Youth Dam and water inlet structures
to fill the reservoirs with water of the River
Taedong.
Water will be stored to the full in Lake
Thaesong by the end of December.
In recent years the DPRK government has directed
efforts to building natural-flow waterways to
fully solve the water problem in farming.
The Paekma-Cholsan Waterway project is now under
way in North Phyongan Province in the
northwestern part of the country.
Kaesong Industrial Complex photo
North Korean employees are at work in a factory
of Livingart Co., a South Korean kitchenware
maker operating in the Kaesong Industrial
Complex in North Korea, while a group of South
Korean officials look around the production
line, Wednesday
NK-China Trade Volume Hits $1-Bil. Mark Once Again
By Park Song-wu
Staff Reporter
North Korea's trade with China amounted to $1.01 billion in the first 10 months this year, up 40.3 percent on an annual basis, the Korea International Trade Association in Seoul said Wednesday.
It is the second consecutive year for the two countries to surpass the $1-billion-mark, according to statistics the association recently obtained from China.
The trade volume between the communist allies increased over the past five years as it marked $1.02 billion last year, $738 million in 2002, $737 million in 2001, $488 million in 2000 and $370 million in 1999.
China is the North's largest trading partner.
Unification Minister to Visit N. Korea
Made-in-Kaesong Products Go on Sale in S. Korea
By Park Song-wu
Staff Reporter
Unification Minister Chung Dong-young will visit North Korea on Wednesday to
mark the first production of goods by a South Korean company in the pilot zone
of the Kaesong Industrial Complex, just beyond the heavily fortified
Demilitarized Zone.
It is the first time for Chung to visit North Korea since he joined the Cabinet
in June this year.
``We got the notification from the North this morning inviting a group of 400
South Koreans to the event celebrating the first production of goods by the
kitchenware manufacturer Livingart in Kaesong,'' a ministry spokesman told
reporters yesterday. The list includes 63 lawmakers, 26 government officials
and 100 business leaders.
.
DPRK Governmental Economic Trade Delegation
Leaves for China
Pyongyang, December 11 (KCNA) -- A DPRK
governmental economic trade delegation headed by
Rim Kyong Man, minister of Foreign Trade,
Saturday left here to visit China. It was seen
off at the Pyongyang Railway Station by Vice-
Minister of Foreign Trade Ri Ryong Nam and
Chinese Ambassador to the DPRK Wu Donghe.
Kimchi stores in China
Kimchi stores and North Korean restaurants in
the Chinese city indicate the North's move to
reform its socialist system. Pyongyang plans to
transform the northwestern border town of
Sinuiju into a special economic zone to attract
foreign investment.
/ Yonhap
12-12-2004 16:49
Projects for Rationalizing Power Supply System
Make Brisk Headway
Pyongyang, December 8 (KCNA) -- Projects for
rationalizing the power supply system are going
full steam ahead in all parts of the country.
They are aimed to put on a more rational basis
the power supply network at different units and
regions including provinces, cities, counties
and major industrial establishments.
The newly established power supply system will
make it possible to do away with the loss of
electricity in transmission and ensure the best
use of it.
It will also make it possible to remove a lot of
transforming equipment and wires and electric
poles in paddy and non-paddy fields that have
long been in use.
The power supply system extending hundreds of
kms has already been updated taking the country
as a whole in a short span of time since the
start of the projects.
Teachers, researchers, scientists and
technicians of Kim Il Sung University and Kim
Chaek University of Technology are contributing
to successfully settling technical problems
arising in the projects.
Income Gap Widens to 15.5 Times Between 2 Koreas
By Lee Hyo-sik
Staff Reporter
The economic gap between the two Koreas widened
further to 32.9 times last year from 32.1 in
2002 as South Korea's gross national income
(GNI) jumped 10.7 percent to $606.1 billion,
while North Korea's rose 8.2 percent to $18.4
billion.
The National Statistical Office (NSO) on
Thursday reported South Korea previously saw its
GNI increase to $547.5 billion in 2002 from
$481.1 billion in 2001, with North Korea's
expanding to $17 billion from $15.7 billion over
the same period.
NK to Boost Train Services to China, Russia
By Reuben Staines, Park Song-wu
Staff Reporters
Isolated North Korea is preparing to increase
its railroad traffic with China and Russia, a
pro-Pyongyang publication based in Japan
reported Thursday.
The Choson Shinbo quoted Ryu Byong-kuk, a
Pyongyang official in charge of the North's
railroad system, as saying that representatives
from the three countries held a five-day meeting
in Pyongyang from Nov. 15 to discuss ways to
boost the frequency of the railroad services.
First South Korean bank in North Korea
First South Korean bank in North Korea: Hwang
Young-key, tenth from left, president of Woori
Bank, cuts the ribbon with finance and business
leaders from the two Koreas to celebrate the
South Korean bank's opening of a branch in
Kaesong, North Korea, Tuesday. Participants
included Kim Yoon-kyu, eleventh from left,
president of Hyundai Asan, and Kim Kyung-hoh,
right, spokesman of the Ministry of Finance and
Economy. Woori became the first financial
services company to open a branch in the North.
But bankers there cannot access the Internet and
phone services.
[photo]
Unification Minister Plans to Visit Kaesong
By Park Song-wu
Staff Reporter
Unification Minister Chung Dong-young plans to attend a ceremony on Dec. 15 to
mark the first production of goods by a South Korean company at a pilot zone in
Kaesong Industrial Complex, just beyond the heavily fortified Demilitarized
Zone, ministry officials said Monday.
Chung's trip to Gaeseong planned
December 06, 2004 ? Unification Minister Chung
Dong-young could make his first visit to North
Korea Dec. 15, an administration official said
yesterday.
"Mr. Chung is expected to join the launching
ceremony for a South Korean product in the
Gaeseong Industrial Complex," said the official
on the condition of anonymity. "A couple of
problems remain, but we are in the last stage to
finalize the trip."
The facility makes kitchen products such as
sinks and is the first one to start production.
Mr. Chung took office in July. Also, an informal
inter-Korean meeting of top officials may take
place during the visit, officials said.
"If a top official joins the ceremony from
Seoul, then it is very likely that Pyeongyang
will send a top official too in response," an
employee at Hyundai Asan said yesterday. The
company is leading the businesses in the
Gaeseong complex.
[Kaesong]
Unification Minister Plans to Visit Kaesong
By Park Song-wu
Staff Reporter
Unification Minister Chung Dong-young plans to
attend a ceremony on Dec. 15 to mark the first
production of goods by a South Korean company at
a pilot zone in Kaesong Industrial Complex, just
beyond the heavily fortified Demilitarized Zone,
ministry officials said Monday.
``Chung intends to visit there,'' a high-ranking
official at the ministry told The Korea Times.
``It is true we are currently in the process of
organizing his visit to the industrial park.''
But he added that Pyongyang has not yet reacted
to Seoul's proposal, saying, ``The whole process
has not yet been completed. So it's difficult to
confirm whether or not he will actually visit
the North at the moment.''
It would be the first time for Chung to visit
North Korea since he joined the Cabinet in June
this year.
Scientific Successes in Light Industrial Domain
Pyongyang, December 3 (KCNA) -- Scientists of
the Branch Academy of Light Industrial Science
under the Academy of Sciences of the Democratic
People's Republic of Korea have registered many
successes in their scientific research this
year. Foodstuff researchers of the branch
academy have found out a new
kind of soybean malt bacteria through research for the standardization of the
bean paste production method. Its protein dissolution ability is 1.5 times that
of the old one. They have also built a process to turn out tens of tons of
bacteria a year.
New Goat Milk Processing Method Developed in DPRK
Pyongyang, December 2 (KCNA) -- Scientists of
the Branch Academy of Light Industrial Science
of the Democratic People's Republic of Korea
have developed a new goat milk processing method
in accordance with the rapid increase of goat
farms in recent years. In order to improve the
taste and quality of kefir, they found three
kinds of lactic acid bacteria and succeeded in
converting the bacteria into powder.
S. Korea to Supply Electric Power to Kaesong in
NK
By Kim Tae-gyu
Staff Reporter
South and North Korea reached an agreement on
the supply of electric power to the Kaesong
Industrial Complex, according to the Korea
Electric Power Corp. (KEPCO) on Friday.
Under the agreement, the South will transfer
electric power to the communist North from late
next month, marking the first time since the
Korean War broke out in 1950.
KEPCO is required to provide 15,000 kilowatts of
electricity through above-ground power lines to
the complex's pilot zone, sized at 28,000 pyong
(92,400 square meters).
By 2007 when the first-phase development of the
Kaesong complex is scheduled to finish at 1
million pyong, the transmission volume will
increase to 100,000 kilowatts.
North Korea has been chronically short of
electricity, making it vital to secure a stable
power supply to operate the Kaesong complex
successfully.
Pyongyang had initially asked that a power
generation facility be built, but Seoul
suggested the complex's electricity needs be met
via power lines.
Land Conservation in DPRK
Pyongyang, November 30 (KCNA) -- Great efforts
have been made to conserve land in the
Democratic People's Republic of Korea in recent
years. Various projects to plant trees for land
conservation, protect terraced plots and edges
of paddy and non-paddy fields and improve
rivers, streams and waterways have been carried
on in the provinces, cities and counties of the
country.
More than 56 kilometers of dykes for controlling
tidewater damaged by a high tidal wave have been
revamped or reinforced with 400,000-odd cubic
meters of earth and 120,000-odd square meters of
stones in Haeju, Ongjin, Pyoksong, Chongdan,
Unryul and Kangryong of South Hwanghae Province
on the western coast.
Asian Countries Discuss International Passenger
Train Service
Meeting of Asian Countries for Cooperation in
Railways Held in Pyongyang
A meeting of Asian countries of the Organization
of Railways Cooperation was held in Pyongyang
from November 15 to 19. It was attended by a
representative of the organization and railway
delegations of the DPRK, China, Russia, Mongolia
and Vietnam.
An opening address by the representative of the
organization was followed by a congratulatory
speech by Im Chol Ung, chief of staff of the
Ministry of Railways of the DPRK.
The meeting involved panel discussions. It
reviewed the international passenger train
service among the Asian countries affiliated to
the organization and discussed the 2005-2006
plan for train service and the issue of
improving the passenger transport service.
The KCNA reported on November 19 that the
meeting provided an occasion of further
developing cooperation among Asian countries in
the field of railways.
A protocol of the meeting was signed on November
19. The protocol deals with the agreement on the
2005-2006 timetable for international passenger
trains and their service by Asian countries
affiliated to the organization.
DPRK-China Economic Project Progresses Steadily
Pyongyang and Beijing Cooperate Closely in
Building Glass Plant
Photo shows the construction site of the Taean
Friendship Glass Plant.
The construction of a glass plant is now in full
swing in the DPRK in close cooperation with
China.
The factory named "Taean Friendship Glass Plant"
is offered gratis by the Chinese government.
The construction started on July 1 as a ground-
breaking ceremony was held at the construction
site in Taean County near Nampo, the DPRK's west
coastal port city in South Pyong-an Province.
The plant will be completed on October 10, 2005,
in the 60th anniversary day of the Workers·Party
of Korea. [Aid]
DPRK Denounces U.S. Obstructions to Construction of Kaesong Industrial Zone
A spokesman for the Korean National Economic Cooperation Federation issued a
statement on November 6 bitterly denouncing the U.S. obstructions to the
construction of the Kaesong Industrial Zone in the name of all Koreans desirous
of national reconciliation, unity and independent reunification.
Economic Exchanges Between DPRK and Italy Increasing
Official economic exchanges between the DPRK and Italy have been gradually
increasing in recent months, South Korea's official Yonhap News Agency reported
on November 2.
A group of eight DPRK officials from its foreign and finance ministries and
central bank left for Italy on September 7 to receive training in finances, a
report released on November 2 by the U.N. Office for the Coordination of
Humanitarian Affairs said.
DPRK: Challenging Expectations
Course organised by the Swiss Center for Applied Studies in International Negotiations (CASIN)
October 18th 2004 / Geneva, Switzerland
Dynamic, inquisitive, engaging and extremely knowledgeable - just some of the feedback speakers gave describing this year's participants at CASIN's 7th annual professional training for officials and diplomats from the Democratic Peoples Republic of Korea (DPRK). 14 members of various Government ministries including the Ministry of Light Industries and the Ministry of Foreign Trade attended the six-week programme.
The participants followed a tailor made, hands-on, multi-dimensional curriculum aimed at enhancing their understanding of the international economy and the functioning of the global trading system.
First Training Seminar on Market Economy in the DPR Korea
As first German political foundation, the Seoul Office of the Friedrich Naumann Foundation (FNF) organized a training seminar on market economy in Pyongyang from March 29th to April 1st, 2004. The four-day seminar on the role of the system of national accounts and commercial accounting in a market economy was attended by around sixty North Korean experts from Academia as well as representatives of economic institutions and the administration.
Workshop on economic reform
Workshop on economic reform and the development of economic relations between the EU and the DPRK from August 31 - September 4
Seminar
on
International Finance:
"The Role and the Functioning of the Banking Sector in a
Market Economy such as Germany"
organised by
Friedrich Naumann Foundation
Foreign Trade Bank
Korean-German Friendship Society
October 25 - October 28, 2004
People's Palace of Culture
Pyongyang
PROGRAMME
Public Presentation for Increasing Agricultural
Production Held
Pyongyang, November 27 (KCNA) -- The first
national scientific and technological public
presentation was held at the People's Palace of
Culture on Nov. 25 and 26 to increase
agricultural production by bringing about a
radical turn in seed improvement. It was co-
sponsored by the Central Committee of the Korean
General Federation of Science and Technology and
the Ministry of Agriculture. It was attended by
officials, scientists and technicians in the
fields of seed selection and breeding from all
parts of the country.
More than 100 papers on scientific and
technological achievements and experience were
presented there.
North Korea Moves Step Closer to Market Economy
The North Korean Cabinet has endorsed moves to establish markets in every
corner of the financially-strapped state and extend business hours late into
the evening, according to an article published in Chunichi Shimbun on Saturday.
The article cites a restricted five-page document that was somehow obtained
from the North regarding market management regulations, revealing how the
cabinet's decision was greatly influenced by the order of Dear Leader Kim
Jong-il. The clandestine report was issued May 5 last year and marked "Volume
No. 27" and "Confidential".
The document records how Kim Jong-il ordered that markets be set up to
facilitate the smooth running of the country's socialist economy. It stipulated
that business hours should be adjusted to give laborers time to shop after
work, and that agricultural products, food and other basic necessities that are
not manufactured by the state can be put on sale.
It is also ordained that a price cap be applied, and that merchants pay rental
fees based on the location and size of the market. Any violations of the legal
code would result in penal and administrative responsibilities being meted out.
t is said that there are about 40 of the markets in Pyongyang and a further 300
in provincial areas.
North Korea's state-run Korea Central News Agency (KCNA) released photographs
of North Korean citizens enjoying slot machines at a shooting range in
Pyongyang. Gambling on this minor scale has only recently been introduced to
North Korea, but it is unclear whether the machines dish out financial
winnings. A casino has also been built in the Najin-Sonbong Free Economic and
Trade Zone, but it is only available to foreigners.
(khjung@chosun.com )
[Marketisation]
Plans for Siberian gas pipeline will not include
Korea, aide says
November 27, 2004 ? A Russian natural gas
pipeline intended to reach export markets in
Northeast Asia is unlikely to be routed to
Korea, a senior Korean government official said
yesterday.
Moon Chung-in, chairman of the Northeast Asian
Cooperation Initiative, said in an interview
with Dow Jones Newswires that he expects the
pipline to go through Siberia to Nakhodka, a
port city on Russia's Pacific coast 32
kilometers (20 miles) east of Vladivostok. Mr.
Moon added that the Russian government hasn't
made the decision official.
The new route differs significantly from one
previously discussed by the three countries
involved: Korea, China, and Russia. The earlier
plan envisioned the pipeline crossing northern
China and either going under the Yellow Sea to
Korea or passing through North Korea. The three
countries had signed a preliminary agreement in
2001, with hopes to tap Siberian gas fields by
2010.
In response to Mr. Moon's comment, Park Jong-
won, an official with the Ministry of Commerce,
Industry, and Energy, said that the rerouting
would not affect Korea. "China is probably
worried about it, but for us, it doesn't matter
how the gas reaches us, as long as it's cheap
and safe."
Park Chang-won, a senior official and a
presidential committee colleague of Mr. Moon,
said that a pipeline route to Nakhodka would be
more favorable to Korea. TNK-BP, an Anglo-
Russian company that is seeking a deal with the
Russian government for development in its gas
field, said that it was not aware of any changes
to the plans.
Meanwhile, a market analyst, asking not to be
identified, said that Russia's attempt to change
the routing of its pipeline is part of an effort
to consolidate control of its energy resources
on a national level. The analyst said that
Russia has less of a need to attract foreign
capital, as skyrocketing oil prices and its
position as the second-largest oil producer in
the world have solidified its power.
by Wohn Dong-hee, Hoh Kui-seek
. Korea, Chinese Fujian Province Actively Promoting Joint Ventures
[Guangzhou, KOTRA]
China's Fujian Province sent economic delegations to North Korea twice this year, on Aug. 30 and Nov. 2, to discuss joint venture projects worth about US$11.7 million. As follow-up measures, detailed negotiations are under way for the construction of two factories, one for coal briquettes and the other for plastic products, according to business sources in the province.
For the coal briquette factory project, China would provide 20 15-ton trucks, three forklifts and 100 tons of diesel fuel while North Korea would supply 10,000 tons of coal. The two sides are also promoting a project to build a factory to produce films and plastic goods for both agricultural and home uses. The equipment, technology and raw materials for the operation of the plant would be provided by China. North Korea would build the factory building and supply labor and the electricity. It will also be in charge of sales
Sichuan Province's Trade Delegation to Visit N.K. in Mid-November
[Chengdu, KOTRA]
The Sichuan branch of the China Council for the Promotion of International Trade (CCPIT) is slated to send a trade and investment delegation to North Korea this month at the invitation of North Korea's Ministry of Foreign Trade and the North Korean Council for the Promotion of International Trade.
Thirty-seven businessmen from 31 companies based in the Sichuan province will participate in the trip, scheduled for Nov. 16 through 20. The visit is aimed at surveying the market prospects for various industries and products, thus enhancing the understanding on the North's investment and trade environment as well as tapping partners for future joint ventures.
Companies Engaged in NK Trade on the Increase
Currently, 127 companies in Yanbian are licensed to conduct external trade. Sixty-six have the license to conduct small-scale frontier trade, and another six have been authorized to participate in foreign construction projects. Of these companies, about 40 have already moved into North Korea¨s Sonbong and Najin Development Districts, establishing food, cigarette and garment factories. The garment factories alone are employing 20,000 North Koreans. In addition, many other companies are pursuing joint ventures in transportation, wood processing, cultivation of marine products, agricultural development, restaurants, trade and tourism
Exports of North Korean Anthracite Coal Up Sharply This Year
[Yonhap,Nov.23th]
North Korea's anthracite coal exports doubled in the first nine months of this year, a report by the Korea Trade-Investment Promotion Agency (KOTRA) said Tuesday. The trade promotion body said the increase is probably related to the acute energy shortage facing China.
It said that data collected from Chinese sources indicated 1.18 million tons of anthracite were shipped from North Korea to China, more than twice the amount for the same period in 2003. From January through September of last year, North Korea exported 530,000 tons of the fuel to its neighbor.
KOTRA also said that demand for fuel has led to a 47 percent increase in prices for the North Korean coal, giving earnings of US$34.7 million for Pyongyang, up from $1.08 million for the same period the year before.
Chinese Companies in Jilin Province Invest $20 Million in N.K.
[Beijing, KOTRA]
Investments in North Korea by Chinese companies based in Jilin Province have been growing, particularly and remarkably since August, according to trade officials of the provincial government.
The trend is related to North Korea's increasing willingness to accept joint ventures with foreigners, the officials said. They noted that the willingness was well manifested in Pyongyang·s decision to expand the Mt. Geumgang tourism district to cover such places as Tongcheon County and Wonsan City.
A growing number of businesses in Jilin are expressing their intention to make investments into North Korea. According to the trade officials, nine Jilin businesses have so far invested $20 million into the North so far in such areas as tobacco, garments and trade.
Investment conditions in North Korea have improved considerably, the officials said, adding that low production costs are the main factor that draws Chinese investors to the North.
Swiss Center Provides Training for N.K. Officials
[Zurich, KOTRA]
The Center for Applied Studies in International Negotiations (CASIN), a Swiss non-profit organization, conducted a training program for North Korean government officials for six weeks from Aug. 23 to Oct. 1.
The training has been conducted every year since 1997 under an agreement between the foreign ministries of the two countries.
The education program is aimed at enhancing North Korean officials· understanding of the domestic and global economy so that North Korea ultimately can function as a member of the world economy. The curriculum includes international relations and diplomacy, the EU, the market economy, international trade relationships and the process of economic reform, overseas direct investments and other subjects designed to help the trainees understand the mechanism of the market economy.
During the training period, the North Korean officials visited such organizations as the European Parliament and the UNCTAD as part of the programs designed to help them gain a better understanding of the international economic assistance programs and various trade relations.
Under the guidance of the Department of Home Affairs, CASIN is executing the task of providing an education for officials from underdeveloped countries and conducting research on ways to resolve international conflicts.
* Source : Press release of CASIN
(Nov. 5, 2004 KOTRA-North Korea Team, Koo Kyung-hee, Tel: 82-2-3460-7423)
Water Resources of River Taedong Extensively
Developed
Pyongyang, November 22 (KCNA) -- Great efforts
are being directed to making an effective use of
water resources of the River Taedong flowing in
the western part of the Democratic People's
Republic of Korea. The river, one of the five
longest rivers in the country, has been
comprehensively utilized for the economic
development of the country according to the
Workers' Party of Korea's far-reaching nature-
remaking plan.
Hydro-power development takes the biggest share
in the utilization of its water resources.
Agreement on Trade and Economic Cooperation
Inked between DPRK and Turkey
Pyongyang, November 19 (KCNA) -- An agreement on
trade and economic cooperation was signed in
Ankara on Nov. 12 between the governments of the
DPRK and Turkey. The agreement was inked by Kim
Ha Dong, DPRK ambassador e.p. to Turkey, and the
secretary of State in charge of foreign trade of
the government of Turkey.
Army-People Power Station Commissioned
Hyesan, November 18 (KCNA) -- Army-People Power
Station No. 410 was commissioned in Kim Hyong
Gwon County, Ryanggang Province. The
servicepersons of the Korean People's Army (KPA)
and the people in the county have built the
large army-people power station by their
concerted efforts true to the intention of the
Workers' Party of Korea to build many minor
power stations in different parts of the
country. This will contribute to the country's
prosperity and the improvement of the standard
of people's living.
[Military economy]
Meeting of Asian Countries for Cooperation in
Railways Held
Pyongyang, November 19 (KCNA) -- A meeting of
Asian countries of the Organization of Railways
Cooperation was held here from Nov. 15 to 19. It
was attended by a representative of the
organization and railway delegations of the
DPRK, China, Russia, Mongolia and Vietnam.
An opening address by the representative of the
organization was followed by a congratulatory
speech of Im Chol Ung, chief of staff of the
Ministry of Railways.
The meeting involved panel discussions. It
reviewed the international passenger train
service among the Asian countries affiliated to
the organization and discussed the 2005-2006
plan for train service and the issue of
improving the passenger transport.
The meeting provided an occasion of further
developing the cooperation among Asian countries
in the field of railways.
Korean Food Served in Pyongyang Restaurants
Pyongyang, November 18 (KCNA) -- Restaurant
serving Korean food has appeared in each
district of Pyongyang, the capital of the
Democratic People's Republic of Korea. Kim Ki
Myong, a section chief of the Public Catering
Management Department of the Pyongyang City
People's Committee, told KCNA that the
department, after consultation with officials
concerned, standardized the cooking methods of
traditional dishes inherent in the Pyongyang
area and chose kinds of folk dishes for each
restaurant according to its actual condition.
N. Korea-China Trade Volume Soars 40.5%
By Jung Sung-ki
Staff Reporter
North Korea's trade volume with China totaled $886 million in the first nine months of this year, up 40.5 percent from a year earlier, the Ministry of Unification reported Wednesday.
With soaring trade between the two countries, Pyongyang's trade surplus with Beijing jumped 22.8 percent over the same period last year to $539 million, a ministry official said. Exports with China reached $347 million, up 81.1 percent from a year earlier.
``China's strong demand for raw materials, such as steel and zinc, is the main cause for the rapidly growing trade volume,'' an official said, adding that North Korea's imports of raw materials and industrial goods had increased while imports of grains had decreased 67.8 percent year-on-year.
The North's trade volume with Japan decreased by 0.9 percent to $210 million in the January-September period over the corresponding period of 2003.
``The political stalemate between North Korea and Japan over the abduction issue seems to have hampered growth in the trade volume,'' the official said. ``North Korea is likely to enlarge its trade with South Korea and China with imports of necessities and consumer goods, while exporting primary industrial goods, including mineral products.''
gallantjung@koreatimes.co.kr
11-17-2004 17:01
Political Risk Top Concern for Foreign Investors
By Seo Jee-yeon
Staff Reporter
Multinational corporations (MNCs) doing business here suggest easing country
and political risks as the top policy task for the South Korean government to
retain and attract foreign direct investment (FDI).
In a survey of 30 leading MNCs in Korea on their suggestions for policy changes
in the local government, 28 percent pointed out the country and policy area,
followed by the labor sector with 23 percent.
It is a rare for political issues to beat the labor sector in policy
suggestions by foreign businesses.
The survey was conducted by professor Rhee Dong-kee from Seoul National
University and Kim Jong-shik, president of Cummins Korea, and the survey
results were presented in a conference on ``Multinational Corporations'
Recommendations for Korea's Competitiveness,'' hosted by the American Chamber
of Commerce in Korea and the Korean CEOs' Association of Multinational
Companies (KCMC) at the Renaissance Hotel.
``Regarding the detailed country and political risks, those surveyed included
the improvement of the predictability of policies and more business-oriented
policies,''' Lee said.
The MNCs' suggestions in the labor sector include flexibility in labor
management practices and law enforcement to discourage unreasonable labor union
movements.
Many Hydro-Power Stations under Construction in
DPRK
Pyongyang, November 15 (KCNA) -- Many hydro-
power stations have been constructed in the
Democratic People's Republic of Korea. The Samsu
and Paektusan Songun Youth Power Stations are
now under construction in Ryanggang Province in
the northern part of the country.
The builders have introduced in the projects a
method of building dams with less quantity of
materials such as cement and steel and a method
of making an effective use of water.
Many Dwelling Houses Built in DPRK
Pyongyang, November 12 (KCNA) -- A large number
of dwelling houses have been built this year for
workers, farmers and office employees in
different parts of the Democratic People's
Republic of Korea including Manpho City of
Jagang Province, Migok-ri of Sariwon City and
Yonsan County of North Hwanghae Province and
Jukchon-ri, Pyoksong County of South Hwanghae
Province. Each flat has living and bed rooms, a
large vestibule, kitchen, bathroom and store.
Each house for farmers has a garden plot, animal
pen, methane gas tank and small greenhouse as
well as an indoor store.
Over the last two years, dwellings for several
thousand households have been constructed in
towns and villages in Yodok County, South
Hamgyong Province, and Anak and Paechon
Counties, South Hwanghae Province.
The newly built houses in county seats are two-
storied buildings and those in rural communities
are single-storied buildings, each for one
family. In recent years tens of thousands of
dwelling houses have been built in the country
to form new residential quarters and streets and
villages facelifted.
[marketisation]
FamilyMart to open outlet in Gaeseong
November 10, 2004 ? A South Korean convenience
store chain will open at the Gaeseong Industrial
Complex in North Korea.
Bokwang Corp.'s FamilyMart was granted business
operation rights by the Ministry of Unification,
and will open a shop later this month, selling
fast food, drinks and other convenience goods.
Bokwang said that a South Korean store manager
will hire three North Korean workers to operate
the store.
The store will initially open from 7 a.m. to 11
p.m., but will later move towards a 24-hour
service. All transactions will be in U.S.
dollars, and goods will be sent to Gaeseong
twice a day through a logistics center in
Yangju, Gyeonggi province, near the
Demilitarized Zone. Since November 2002, Bokwang
Corp. has operated two FamilyMart stores at
North Korea's Mount Geumgang resort.
[Kaesong]
DPRK's Tremendous Achievements in Construction
Pyongyang, November 9 (KCNA) -- Ten years have
passed since the order of the supreme commander
of the Korean People's Army "On Building
Chongryu Bridge (Second Stage) and Kumnung
Tunnel No.2 in Pyongyang" was issued on November
9, Juche 83(1994). It was a historic order which
aroused the entire people of the Democratic
People's Republic of Korea in the efforts for
creation and construction.
After President Kim Il Sung passed away, the
DPRK was in a grave situation caused by the
imperialists' vicious moves to stifle the DPRK
and natural disasters.
The international community was focusing
attention on the DPRK, afraid of its political
prospect.
At that conjuncture, Kim Jong Il issued the
order, demonstrating to the whole world his
strong will to carry forward the Juche-based
revolutionary cause pioneered by President Kim
Il Sung.
Encouraged by his order, the Korean servicemen
and people turned out as one to carry out the
order with a firm determination to share life
and death with him, who was resolved to
invariably implement the behests of the
President. They completed the construction of
the second-stage Chongryu Bridge and Kumnung
Tunnel No.2 in a matter of one year. With this
stamina, they have erected numerous edifices to
suit the Songun era over the last decade.
They have finished nearly 40,000 projects
including more than 6,000 industrial
establishments and 1,500-odd cultural facilities
over the last seven years from the "Arduous
March".
Korea's Brand Value Falls for 3rd Straight Year
By Kim Sung-jin
Staff Reporter
The brand value of South Korea fell for the
third straight year in 2004. Korea ranked 12th
among 36 countries surveyed.
Samsung Electronics boasted of the greatest
brand value among all Korean corporations with
its brand value assessed at 21 trillion won.
According to the Korea Institute of Industrial
Policy Studies (IPS) Wednesday, Korea's brand
value was estimated at $370 billion.
The IPS reckoned Korea's brand value on the
basis on merchandise and service exports,
tourism revenue, national competitive ranking by
foreign institutions and survey results on the
degree of intimacy felt by foreigners.
Korea ranked ninth in sovereign brand value
among the 16 major countries back in 2002, when
the IPS began the survey, and its rank dropped
to 10th spot among 33 countries surveyed in 2003.
Cooperation Account Opened Between Sberbank of Russia and Daesong Bank of North Korea
3 November 2004
[Moscow, KOTRA]
The ZRPress Information Agency, an information center within the far-east area in Russia, reported that the Sberbank of Russia and the Daesong Bank of North Korea contacted each other for a mutual cooperation early in October of this year. As a result, the Primorskii (the Maritime province) department of the Russia Sberbank opened an account for the Daesong Bank of North Korea. The US Dollar, Japanese Yen and Euro currency can be used in the account.
China Reduces the Number of Tax-Reduction Commodities of Its Border Trade
Kim Gwang-il,
3 November 2004
As the tax benefits provided to the border trade between North Korea and China is reported to be reduced or abolished, attention is being drawn to the backdrop of its reason. From earliery this year, the Chinese regional governments such as Liaoning and Jilin provinces have so drastically cut down on the number of items which were on the list of the border trade tax benefits that there is a rumor that the tax benefits were abolished.
According to an accountant who works for a Dandong-based import agency handling commodities made in North Korea, since May 1, this year, 2004, the Chinese customs in Dandong has drastically reduced its measure for the tariff reduction imposed on the commodities which were traded across the border between North Korea and China. The tariff and import taxes which have been cut by half to be imposed on seafood, herbal medicine, various metal products, iron ore and other food and beverages from North Korea were reported to now be abolished.
The backdrop to this series of measures may come from China's entry to the WTO and the Chinese central government's policy concerning self-supply of raw materials.
S. Korean Firm to Open Convenience Store in Kaesong Park
[Yonhap,Nov.9th]
A South Korean retailer has gotten a government go-ahead to open a convenience store in the North Korean border city of Kaesong late this month, officials said Tuesday.
The Ministry of Unification permitted FamilyMart, a convenience store franchise based in Seoul, to begin operating its 24-hour outlet selling fast food, drinks and daily necessities in Kaesong's inter-Korean industrial complex, a few kilometers north of the border, said the officials.
South and North Korea have been developing the Kaesong industrial park since 2000, when the Hyundai Group and North Korean leader Kim Jong-il agreed on joint industrial project in the city and allowed South Koreans to travel there overland. Fifteen South Korean companies are expected to move into Kaesong's pilot zone as early as late November.
The 3.3-million-square-meter pilot complex they will use is part of the 66 million square meters the North has committed for the joint project. FamilyMart will spend 150 million won (US$136,000) on its new store, the officials said, and a South Korean manager and three North Korean staff will man the store, located in the Kaesong Development Complex Management Office.
Earlier this month, the ministry picked South Korea's second-largest lender, Woori Bank, to open a branch in the Kaesong complex. FamilyMart already operates a store at the North's scenic resort of Mount Geumgang, where families separated since the Korean War are briefly united in government-arranged meetings.
S. Korea Aims to Label Kaesong Goods 'Korean Made' in FTA Talks
[Yonhap,Nov.9th]
South Korea is negotiating with Singapore to give goods produced at an industrial park in North Korea the same status as those made here under a bilateral free trade agreement (FTA), government officials said Tuesday.
The Ministry of Foreign Affairs and Trade said both sides are discussing the details of the proposal aimed at expanding the market for goods made in the industrial park in Kaesong north of the demilitarized zone.
"Singapore has attached some preconditions to the request," a ministry official said. "Talks are under way on the matter." Seoul is making an effort to put the clause in its FTA deal with Singapore because it will be the first time that goods made at the special industrial park will be considered as an "internal" business transaction between South and North Korea.
South Korea has an FTA arrangement with Chile that went into effect in April, but did not include a Kaesong provision. Seoul and Pyongyang have agreed that Kaesong goods will be treated as domestic goods, but some experts have said that foreign countries will not see things in this light.
Under this arrangement, products can be brought in from Kaesong without paying import duties and then will be shipped to the Southeast Asia country under preferential duties
Singapore to include Gaeseong in trade pact
November 09, 2004 ? In free trade talks with
Korea, Singapore has agreed to give products
manufactured in North Korea's Gaeseong
Industrial Complex the same status as South
Korean goods and levy the same tariffs.
South Korea's Ministry of Foreign Affairs and
Trade said that the two countries' negotiators
were still working on specific details, adding
that only Gaeseong, not other North Korean
locations, would be covered by the understanding.
If an agreement with Singapore is signed by the
end of the year, as forecast by officials, it
would be the first international pact to at
least partly define inter-Korean trade as
domestic.
The ministry added that it would push for
similar recognition for Gaeseong products in
future negotiations with the nine other ASEAN
members, and also in other bilateral trade
talks.
[Kaesong]
Hand-Knitted Goods in Great Demand
Pyongyang, November 8 (KCNA) -- Quality hand-
knitted goods produced in the Democratic
People's Republic of Korea have enjoyed
popularity at various international commodity
fairs. The demand for the goods reflecting the
fine hand-knitting skill of Korean women is ever
increasing at foreign markets. Om Jong Hwa,
manager of the Knitted Goods Export Company
under the Rungrado General Trading Corporation,
said this in an interview with KCNA.
The goods of various colors and different shapes
are soft and comfortable and convenient to wear.
Most of the woollen sweaters are embroidered
with flowers and other decorations.
Catching the eyes of people are women's sweaters
decorated with sunflower patterns, children's
sweaters of different colors and single-color
sweaters for the aged.
The company has steadily improved models and
quality of their products to suit the developing
trend of knitted wears, hobbies and tastes of
people according to their ages, sexes.
`North Korea Give Up on Sinuiju Project'
By Park Song-wu
Staff Reporter
North Korea has indirectly notified China that it has given up plans to develop
a special economic zone in Sinuiju, near its border with China, a Japanese
newspaper reported Sunday.
The Tokyo Shimbun quoted unidentified sources as saying that a North Korean
professor at the Academy of Social Sciences in Pyongyang told visiting Chinese
scholars from Jilin Province in early August that the Cabinet had decided to
scrap the project.
U.S. Obstructions to Construction of Kaesong
Industrial Zone Assailed
Pyongyang, November 6 (KCNA) -- A spokesman for
the Korean National Economic Cooperation
Federation issued a statement Saturday bitterly
denouncing the U.S. obstructions to the
construction of the Kaesong Industrial Zone in
the name of all Koreans desirous of national
reconciliation, unity and independent
reunification of the country. The statement
said: The U.S. has so far hindered its
construction by hook or by crook but it is the
first time that officials concerned of its
government openly let loose a string of
nonsensical remarks intended to obstruct the
project and pressurized south Korea to adjust
the tempo of the project depending on the
prospect of settling the nuclear issue.
These moves were prompted by its great
displeasure with the fact that the project is
set to enter the phase of full-scale
construction soon despite the whole gamut of its
obstructions and by its sinister aim to woo
south Korea to earnestly join in implementing
the hard-line policy it has pursued toward the
DPRK over the nuclear issue and the human rights
issue.
.The U.S. is not entitled to say this or that
about what the Koreans build on their land, the
statement said, urging all the Koreans to be
vigilant against the U.S. high-handed moves for
domination and interference.
The statement called upon all the Koreans in the
north and the south to turn out in the anti-U.S.
struggle to defend the dignity and the
sovereignty of the nation under the uplifted
banner of the June 15 joint declaration and
decisively deter the U.S. from obstructing the
construction of the zone for the present.
[Sanctions]
North Korea¨s Friendly Attitude Toward Foreign Invested Pharmaceutical Companies
[Berlin, KOTRA]
The Pyongsu Joint Venture Company, an enterprise jointly invested by the Hong Kong-based NDC (North China Development Corp.) and the Pyongyang Pharmaceutical Company, has been established in Pyongyang in June of 2004.
According to the information posted at the website of the Bfai (German Office for Foreign Trade) of Germany, Interpacific Investors Services, Inc. and a U.K. consultant each have a stake in NDC, and the U.K. consultant helped establish it. The joint-venture company¨s paid-up capital is US$1.6 million, of which NDC invested about $1 million worth of equipment. And the North Korean partner provided the building, site and the manpower for it.
[FDI]
10 Japanese General Construction Firms Cancelled
Their Visiting Schedule to the NK
- The Jochongnyeon (Pro-Pyongyang Federation of
Korean Residents in Japan) has invited them to
North Korea to inspect its infrastructures such
as dams or harbors.
- Japanese companiesˇŻ movement in preparation
of economic cooperation with North Korea after
the diplomatic normalization of the two
countries.
[Tokyo, KOTRA]
It has been revealed that 10 Japanese general
contractors including Daisei Conctruction, one
of the largest general construction companies in
Japan, planned to visit North Korea for the
inspection of its infrastructures, etc.
Some of them had already departed for North
Korea on October 19, 2004, and the visiting
schedule was all of a sudden cancelled for the
reasons of the worsening public sentiment
against it. It is said that some members of the
delegation entered into Pyongyang.
As the Japanese government has been pressuring
the North Korean government, which hasn't
responded to its investigation request for the
whereabouts of the 10 missing Japanese presumed
to be abducted by the North and North Korea's
nuclear weapons development program, the
Japanese firms' plan to visit North Korea was
criticized to be 'way too careless,' according
to an unidentified Japanese government official.
[Sanctions]
Woori Bank to Open Branch in N. Korea in Late
November
[Yonhap,Nov.2th]
Woori Bank, South Korea's second-largest lender,
will open a branch as early as this month in a
North Korean city where the two Koreas are
building a joint industrial complex, officials
here said Tuesday.
This would be the first time for a South Korean
commercial bank to operate a branch in North
Korea. It will cover business transactions
between South Korean companies and North Koreans
in the Kaesong industrial complex, a few
kilometers north of the border.
Exchanges between Italy, N. Korea on Increase
[Yonhap,Nov.2th]
Official exchanges between North Korea and Italy
have been gradually increasing in recent months,
various reports show. A group of eight North
Korean officials from foreign and finance
ministries and central bank left for Italy on
Sept. 7 to undertake training in finances, a
report released Tuesday by the U.N. Office for
the Coordination of Humanitarian Affairs said.
The visit preceded the participation of eight
North Korean Foreign Ministry officials in a
forum on North Korea-European Union held in
Como, Italy on Sept. 24.
In late September, a six-member Italian
parliamentary delegation visited Pyongyang to
promote cooperation and exchanges between the
two countries. During their five-day trip, the
Italian delegation met top Pyongyang officials,
including North Korea's No. 2 leader Kim Yong-
nam.
Italy, which established diplomatic ties with
North Korea in 2000, has provided a grant of
750,000 euros (US$955,870) to North Korea to
help the communist state develop its
agricultural and sanitation sectors.
It also donated $3.6 million to the World Food
Program, which will be used to ship relief aid
including sugar. Trade volume between Italy and
North Korea stood at US$31.1 million in 2003, up
from $18.2 million in 2002.
Seoul Rejects Allegations of U.S. Obstruction of
Kaesong Project
[Yonhap,Nov.1th]
South Korea on Monday dismissed allegations that
the United States is trying to interfere with an
inter-Korean project for building an industrial
zone in the North by restricting the inflow of
certain South Korean products into the area.
"The U.S. side understands the meaning and the
importance of the Kaesong industrial complex
project and has a position that it will provide
active support (for the project)," the
Unification Ministry said in a report.
"There is no cause of discord between South
Korea and the U.S. regarding this issue," it
said. The two countries have been in talks to
review a list of machinery and equipment that
South Korean companies want to relocate to the
industrial zone currently under construction in
the North Korean border city of Kaesong.
The United States can ban the shipment of
"strategic products," such as precision
machinery and high-tech computers, to countries
considered supporting terrorism like the
communist North, if those products are American-
made or more than 10 percent of their parts are
sourced from the U.S.
[Sanctions]
Japan-North Korea Trade on Downward Path
[Osaka, KOTRA]
The commodity exchanges between Japan and North Korea are on the decrease. Statistics released recently by the Japanese customs authorities show that Japan¨s trade with the North during the first eight months of this year has fallen by more than 10 percent, both in exports and imports, from the corresponding period of last year.
The Japanese imports from the North from January to August amounted to 11.3 billion yen, a decline of 15.6 percent from the same period of last year. The Japanese exports to the Communist country totaled 6 billion yen, a 18.4 percent drop from last year.
The declining bilateral trade is due partly to the economic sanctions the Japanese government has maintained since the September 2002 Japan-North Korea summit over the question of the Japanese kidnapped and taken to the North. Another factor contributing to the decrease in the bilateral trade is Japan¨s enactment of a law that restricts its exports to North Korea of items that may be used in the development of nuclear weapons.
[Sanctions]
Increase in N. K. Exports of Bags, Magnesia to Poland
[Warszawa, KOTRA]
It has been reported that there was a sharp increase in North Korean exports of magnesia and bags to Poland during the first half of this year.
In the first half of this year North Korea exported trunk, bags and related items worth $170,000 to Poland, a tremendous increase of 3320 times compared with last year's $50. Also, $130,000 worth of magnesia was exported to the European country, registering a 150% increase from last year's $871. North Korea have abundant magnesia deposits of comparatively good quality, considered one of the country's promising export items.
S. Korean Lawmakers to Visit Industrial Park in N. Korea
[Yonhap,Oct.19th]
A group of 62 South Korean legislators will travel by bus across the heavily fortified border with North Korea this week to visit an industrial park being built by South Korea in the communist country, officials said Tuesday. The one-day visit, scheduled for Wednesday, underpins North Korea's keen interest in expanding economic ties with Seoul, despite the two-year international tension over its nuclear weapons program.
OKTA to Hold Trade Session in Pyongyang
[Sydney, Toronto / KOTRA]
The World Federation of Overseas Korean Traders Associations (OKTA) is scheduled to hold a trade consultation session in Pyongyang later this month concerning the possibility of making investments into North Korea and the exportation of North Korean goods.
Status of North Korean Companies¨ Patent Application in Thailand
[Bangkok, KOTRA]
As of July of 2004, according to the statistics of the Thai Commerce Ministry, North Korean companies have applied for a total of 22 items to be patented by the Thai Patent Authorities.
In 2003, no patent applications was made by any North Korean company operating in Thailand, but the items for their patent applications have increased to 22 so far this year. The patent approved items by the Thai Patent Authorities up until now, since 2001, are the four items including the heat exchanger using a metal plate, the piezoelectric gas lighter with an embedded nozzle and a compressor equipped with an overload prevention bloc.
North Korean companies, meanwhile, have applied for the registration of only two trade marks to the Thai Patent Authorities in 2003.
North Korean authorities had dispatched a staff of the Pyongyang New Technology International Information Center to the European Patent Office in Munich, Germany in July of last year to apply for the patent of its welding machine. The North Korean patent information registered with the European Patent Office are four items including a fingerprint verification system, semiconductor type household beauty equipment and the perfect inorganic permanent anti-corrosion non-toxic clean paint.
*Source : Thai Ministry of Commerce, Intellectual Property Team
October 10 2004
Pyongyang Gives Benefits to Investment from Koreans Overseas
[Yonhap, Oct.23th]
North Korea is to give special benefits to Koreans overseas who invest in the country, the North's vice foreign trade minister said Friday. Pyongyang "recently lowered the minimum monthly wage from US$80-120 to 30 euro ($37.23)" to attract investment from Koreans overseas, Kim Yong-sul said at a trade convention. He was quoted by the Chosun Shinbo on its Internet edition on Saturday.
The newspaper is published by the pro-Pyongyang General Association of Korean Residents in Japan. "You may be the first ones to hear such news," Kim said to the trade convention participants at "World - the Overseas Korean Traders Association (OKTA)." "There is no other country that has such a low minimum monthly wage. India's is $55, followed by Beijing with $57, Shanghai with $64, Indonesia with $66, Thailand $81 and the Philippines with $98," Kim said.
[FDI]
Foreign Diplomats Visit Duck Farm
Pyongyang, November 3 (KCNA) -- Diplomatic
envoys of various countries and representatives
of international organizations here visited the
Ryongji Duck Farm Wednesday. They looked round
with keen interest the production processes
equipped with modern facilities, being briefed
on the fact that servicemen of the Korean
People's Army built the modern duck farm in a
short span of time. [military economy]
Pyongyang-OKTA Consultative Meeting Held in
Pyongyang
For Economic Prosperity and Development of the
Nation
Respective Participants' Wishes Gathered
A consultative meeting between Pyongyang and
World Federation of Overseas Korean Traders
Associations (OKTA) was held in Pyongyang on
October 22.
The OKTA is organized in 1981 by overseas Korean
traders and industrialists.
The consultative meeting was co-sponsored by the
Korea Committee for the Promotion of
International Trade and the OKTA and backed up
by the Korea Supporting Committee for Overseas
Compatriots.
Participating there were 164 Korean traders from
21 countries including Canada, U.S.A., Japan,
Germany and Brazil and Korean workers from 78
trading companies and associated companies.
It was the first time for the members of the
OKTA to visit the DPRK.
Kaesong Industrial Zone Inauguration Ceremonies
Held
Photo shows a ceremony to inaugurate the Kaesong
Industrial Zone Management Committee.
A ceremony to mark the inauguration of the
Kaesong Industrial Zone Management Committee and
start the construction of enterprises to operate
in the zone was held in Kaesong on October 20.
Present there from the North side were Ju Tong
Chan, general director of the General Bureau for
Central Guidance for the Development of the
Special Zone, and officials concerned and from
the South side Jo Myong Gyun, head of the Group
for Supporting the Work in the Kaesong
Industrial Zone of the South Korean Ministry of
Unification, Kim Yun Gyu, president of Hyundai
Asan, Pak Kon U, acting president of the Land
Company, and those concerned with its economic
development.
Natural Aroma Goods Made in DPRK
Pyongyang, October 12 (KCNA) -- Natural aroma
goods made by the Pyongyang Essential Oils
Research Centre (e-mail:ksttc@co.chesin.com.)
are popular among users. Chongsong (pine),
Jinung (intellectual) and Wisaeng (hygienic)
perfumes which are extracted from natural plants
abundant in Korea provide clean environment and
has a good effect on human body for their fresh
and fragrant aroma.
Chongsong perfume extracted from needle-leaf
trees including pine gives off fresh resin
aroma. It removes mould and other unpleasant
smell and provides aseptic environment in sauna.
It makes people feel refreshed and protects
bronchial tube.
Jinung perfume emits such air smell as in deep
forest or lake, thus creating a mild atmosphere.
Chinese Firm in Shandong Signs MOU With N. Korea on Gold Mining and Refining
[Qingdao, KOTRA]
A Shandong-based Chinese company made an MOU with North Korea's Committee for Promotion of External Economic Cooperation at the end of last August regarding gold mining and refining in Mt. Sannong of North Korea, China's Jinan Daily has reported. According to the MOU, the two parties will set up a joint venture company for gold mining in North Korea, and they have agreed to transport the gold concentrate mined at the Mt. Nongsan area to the Shandong-based Chinese company and to refine it there.
The company, which has been importing the gold concentrate from North Korea through a trade agent since 2002, recently proposed to establish a joint venture with a North Korean partner as the North pushed an open-door policy more aggressively, according to the newspaper.
Shandong Province Boats Begin Fishing in East Sea Off North Korea
[Qingdao, KOTRA]
Forty-two ships of three fishery companies based in China's Shandong Province started fishing operations in the East Sea off North Korea during the first half of this year, it has been belatedly learned.
The Shandong Province government earlier this year obtained from the North Korean government permission to fish in the East Sea, with assistance from the Chinese Agriculture Ministry and the Chinese Embassy in Pyongyang, according to a Sept. 9 report of the Dazhong Daily, which is published in Shandong Province. Fifty-four ships of four fishery companies gained permission for fishing in the East Sea area around North Korea. Forty-two of the boats belong to three fishing companies headquartered in Shandong Province. The boats mainly catch squid, about five to eight tons a day, the report said.
Beginning in 2005, under an agreement with North Korea's Fisheries Ministry, up to 60 to 100 fishing boats from Shandong Province will be operating in the East Sea off North Korea. The agreement will also allow the Chinese companies to expand their operations from fishing to the cultivation and cold-storage processing of various marine products, according to the report.
* Source : Dazhong Daily, Sept. 9, 2004
Regulations of Insurance in Kaesong Industrial
Zone Adopted
Pyongyang, October 11 (KCNA) -- Decision No. 35
of the Presidium of the DPRK Supreme People's
Assembly "On the Adoption of the Regulations of
Insurance in the Kaesong Industrial Zone" dated
September 21, Juche 93 (2004) has been
published. The decision says the regulations
were adopted and the Cabinet and organs
concerned of the DPRK are to take working
measures for their implementation.
The regulations consist of 28 articles.
Regulations on Real Estate in Mt. Kumgang
Tourist Zone Adopted
Pyongyang, October 11 (KCNA) -- Decision No. 36
of the Presidium of the DPRK Supreme People's
Assembly "On the Adoption of the Regulations on
Real Estate in Mt. Kumgang Tourist Zone" dated
September 21, Juche 93 (2004), has been
published. The decision says the regulations
were adopted and the Cabinet and organs
concerned of the DPRK are to take working
measures for their implementation.
The regulations consist of 57 articles of four
chapters.
The mission of the regulations is to strictly
establish the order of acquisition and dealing
of the real estate in Mt. Kumgang Tourist Zone
so as to fully ensure economic activities and
living conditions of enterprises and
individuals.
NK, Russia Agree to Modernize Railroad Link
By Park Song-wu
Staff Reporter
Pyongyang and Moscow have agreed to modernize the railroad between Rajin, North
Korea's northeastern-most port city, and Hasan, the final stop on the
Trans-Siberian Railroad (TSR), the Unification Ministry said Monday.
``The two countries held talks in early July in Russia to reach an agreement
over improving the dilapidated railway linking the North with the TSR,'' a
ministry official said.
However, he denied a local daily's front-page story, saying that the two port
cities in the border already have a railroad link, which will be used later to
connect the Trans-Korean Railroad (TKR) with the TSR.
The JoongAng Daily reported on its Monday edition that North Korea and Russia
agreed to link the two cities, with a prediction that the agreement would deal
a blow to the Seoul government's TKR-TSR connection project.
``Our `iron silk road' project was designed to cover the two port cities from
the beginning,'' the official said. ``There is no problem in an agreement to
modernize the railway section between the two cities.''
North sets regulations on real estate owners
North Korea's legislature has adopted
regulations that will allow South Korean and
foreign investors to have limited rights to own
real estate inside the country's scenic Mount
Geumgang resort area, the North's state-run
media reported yesterday.
The Korea Central News Agency said the communist
country's Supreme People's Assembly adopted the
regulations on Sept. 21. Under to the new rules,
foreign investors can own buildings and use
land, but not purchase the latter.
Kim Jong Il Gives Field Guidance to Ryongji Duck
Farm
Pyongyang, October 10 (KCNA) -- Supreme
Commander of the Korean People's Army Kim Jong
Il, general secretary of the Workers' Party of
Korea and chairman of the National Defence
Commission of the Democratic People's Republic
of Korea, gave field guidance to the new Ryongji
Duck Farm built by servicemen of the KPA. The
farm has a total floor space of more than 55,
000 square meters.
Russia, North develop plan for railroad link
A previously undisclosed North Korean and
Russian plan to link the Trans-Siberian Railroad
with Rajin, North Korea's northeastern-most
port, was revealed yesterday.
The deal, apparently concluded in July in
Moscow, is contained in a letter of protocol. A
Seoul official said yesterday, "We recently
found out about it from a private organization."
Foreign Ministry officials said that they had
received no official notification on the
agreement from Moscow, despite meetings there
two weeks ago between President Roh Moo-hyun and
President Vladimir Putin of Russia.
In the summer, Moscow asked for a delay in talks
among South Korea, North Korea and Russia on
extending the railway. The talks had been
scheduled to take place in August.
Analysts say that if the port of Rajin is linked
to the Trans-Siberian Railway, then it is likely
that linking the system to South Korea will be
put off for some time. Seoul has pushed for
tying its west coast Gyeongui railway with the
Russian line, but the North has sought a link
along the east coast. The Gyeongui line would
link South Korean railways to Sinuiju, the
northwestern most port in North Korea.
Experts said if South Korea wants a tie-in, then
it would have to build a rail bed along the east
coast in the South. Logistics experts say that
this may take up to 10 years to complete.
Professor Kwon Won-soon of Hankuk University of
Foreign Language Studies said, "North Korea can
gain from managing the freight at Rajin, and
Russia benefits from the lower cost of
transportation, so both will have advantages."
The agreement would mean North Korea would begin
work on modernizing the port of Rajin, where
facilities are said to be poor. A government
official said yesterday, "If the port of Rajin
is linked, many of the logistics that went
through the ports of Busan and Gwangyang would
then be rotated to Rajin, with consequences for
our port industry."
S. Koreans Allowed to Own Real Estate on Mt. Kumgang
By Park Song-wu
Staff Reporter
South Koreans will be entitled to own properties at the North's Mt. Kumgang as
Pyongyang has approved new real estate regulations for the resort area.
The Seoul government on Monday welcomed North Korea's approval of insurance
policies for firms operating at an industrial complex in Kaesong and new real
estate regulations for the Mt. Kumgang tourism resort on the North's east coast.
20 Western Financial Firms to Visit North Korea in October
[Milan, KOTRA]
About 20 Western financial companies, including three Italian firms, will be part of a commercial delegation scheduled to visit North Korea in October 2004 to explore possible investment opportunities, a leading Italian business economic daily has reported.
The three Italian institutions are the Gestille Found (an institution under the Banca Popolare di Verona), the Anima (an investment bank affiliated with the Bank di Desio Group) and the Europim, according to a Sept. 25 report by Il Sole 24 Ore. The other participants in this mission arranged by the BNP Paribas Peregrine of France are from the United States, Britain and Hong Kong.
The Italian participants have voiced their concerns regarding North Korea in terms of the possible risks involved in dealing with that country and the political stability. The Italians are also worried because they know very little about the Communist country, the paper reported. It cited them as saying, however, that they still view North Korea as a place that could provide attractive chances for investment.
Responses shown by these participants are related to North Korea's request to the United Nations that Western aid to the North should be expanded from humanitarian help to technological cooperation and the construction of a social infrastructure, the daily said.
It remains to be seen what decisions the Western institutions will make following their North Korean trip. However, the delegation's dispatch itself signals that despite uncertainties over the North's political system and its future, the Western financial institutions have begun reviewing the prospect of the Asian country becoming an investment market for the West, the daily reported.
* Source : Il Sole 24 Ore, Sept. 24, 2004
(Oct. 1, 2004
[FDI]
North Korea-Thailand Trade Trend for January-July, 2004
[Bangkok, KOTRA]
The trade exchange volume between North Korea and Thailand during January to July, 2004, displayed a marked increase of about 33% compared with the same period of last year
North Korea's main import items from Thailand are computers and their parts with an import record in the amount of $25 million, which is an increase of 17.43% compared with the same period of the previous year and this has accounted for 19.55% of Thailand's total exports to the NK. North Korea's sharply increasing import items include rice (166.11%), electrical acoustic and visual signal apparatus (4,866.88%), steel (1,811.13%), clothing (290.33%), as well as, wood and wooden products (400.88%), while imports of sugar (-20.83%) and machinery (-69.29%) have decreased.
North Korea's main export item to Thailand is various engine oils, of which their exports have continued following the numbers of the 1st quarter of 2004. This Korean Peninsular countryˇŻs export of their engine oils to Thailand was recorded at $13 million during the months of January to July, 2004, thus representing 30% of Thailand's total imports from North Korea. This country had shipped $21 million worth of its engine oils to Thailand in 2002, and they stopped exporting those engine oils in 2003. In 2004, however, the shipping of North Korean engine oils to Thailand resumed again. North Korea's other important export items include cathode ray tubes, numerous petrochemical products, industrial machinery, as well as, paper and paper made products. Some of this countryˇŻs rapidly increasing export items include cathode ray tubes (154.82%), paper and paper made products (45,230.13%) and computer parts (209.87%).
British Enterprise Becomes the First Foreign Investor in NK's Crude Oil and Gas Field
[Vladivostok, KOTRA]
The ITAR-TASS news agency of Russia recently reported that the British oil refinery enterprise Aminex Oil Company has acquired a business license from the North Korean Government for the British companyˇŻs probing and production of hydrocarbon within North Korea. The British oil company became the first foreign investor in North KoreaˇŻs crude oil and gas industry, according to ITAR-TASS
Aminex
Aminex PLC is an experienced, independent, oil and gas company with a proven track record of oilfield exploration, development and production operations in diverse areas of the World. Aminex currently produces oil and gas in the American states of Texas and Louisiana and in the Russian Republic of Tatarstan.
Following the profitable disposal of interests in the Komi Republic of Russia in 2001, Aminex
Aminex Signs 20-Year Agreement to Develop North Korea's Petroleum Industry
20 September 2004
Aminex PLC, the oil and gas company listed in London and Dublin, announces that it has signed a Petroleum Agreement with the Government of North Korea ("DPRK") to assist in the development of the petroleum industry in that country, onshore and offshore.
HIGHLIGHTS
• Agreement valid for 20 years
• The country is considered highly prospective for new discoveries
• Aminex will:
- have limited financial exposure
- initially provide technical assistance
- receive a royalty on hydrocarbons produced from any new drilling in the country
- be entitled to a carried interest in any wells drilled by incoming companies
- have a prior right to explore in its own name anywhere in the country
The Agreement is part of North Korea's drive to develop an indigenous energy industry. Signing took place on 30 June 2004 in Pyongyang in the presence of the British Ambassador but was subject to certain closing conditions which have now been satisfactorily fulfilled.
DPRK has an existing petroleum industry and several wells have been drilled onshore and offshore over a 25 year period, resulting in limited discoveries of oil. Aminex believes that the country is highly prospective for new discoveries but lack of resources has so far restricted progress.
Under the terms of the Agreement, Aminex will initially provide technical assistance to the DPRK through assessing existing data, obtaining new data, assisting with drawing up a framework for licensing exploration areas and for marketing the country's potential to the international oil industry.
In return, Aminex will receive a royalty on hydrocarbons produced from new drilling anywhere in the DPRK, onshore or offshore, and be entitled to a carried working interest in any wells drilled by incoming companies.
Importantly, Aminex will have a prior right to explore in its own name, either alone or with international industry partners, anywhere in the territory covered by the Agreement.
The Agreement represents only limited financial exposure for Aminex at this stage with the option to expand the operation through exploration and development drilling under appropriate circumstances.
Brian Hall, Chief Executive of Aminex, said:
"This Agreement is the culmination of a long term effort. Aminex has been reviewing North Korea for several years and first visited the country in 2001. At present relations between North Korea and the outside world are strained but the important relationship with South Korea appears to be improving and commercial co-operation is on the increase. An expanding energy industry may possibly help to build bridges between DPRK and the outside world."
Enquiries:
Aminex plc
Brian Hall 020 7240 1600
College Hill
Jim Joseph/Ben Brewerton 020 7457 2020
New Gov't Office to Assist Kaesong Complex Companies
[Yonhap,Oct.4th]
The government will open an office on Tuesday to assist business companies intending to establish operations at a North Korean industrial park in the border city of Kaesong, said a government official Monday.
The construction of a pilot site was completed in June, and 15 South Korean companies plan to move to the site by the end of this year. The South will allow about 2,000 South Korean companies to relocate to the Kaesong park by 2020 to benefit from the lower land and labor costs in the North.
No Progress Evident in Iron Silk Road Project
By Park Song-wu
Staff Reporter
The two Koreas are making no progress in linking
the Trans-Siberian Railway (TSR) to the Trans-
Korean Railway (TKR), even after a Seoul-Moscow
summit last month promised to expedite efforts
to establish the ``iron silk road,'' connecting
the Korean peninsula to Europe.
``We don't have a settled plan yet to hold talks
with North Korea and Russia on the TKR-TSR
linkage,'' a Unification Ministry official in
Seoul told The Korea Times yesterday. ``It is
not just an inter-Korean issue. We need the
consensus of all the participating nations to
set a schedule for the second round of talks.''
Railroad experts from the three countries
promised in their first talks, held in Moscow
from April 28 to 30, to continue trilateral
dialogue on the project.
On Oct. 1, the Voice of Russia quoted Fadeev
Gennadiy Matveevich, president of Russian
Railways, as saying that a second round of talks
would be held in Pyongyang, according to Yonhap
news agency. But no schedule was reported.
North Korea gets the beers in
The outskirts of Pyongyang, where drab apartment
blocks give way to muddy fields and narrow bumpy
roads, is where Trowbridge meets the Dear
Leader. Across a field worked by farmers with
simple hand tools rises the modern steel-framed
building of the Taedonggang Brewery - which used
to be the Ushers Brewery of Trowbridge,
Wiltshire, maker of award-winning real ales,
until it was bought and shipped lock, stock and -
well - barrel to the world's most secretive
state.
"Our people like the beer a lot," says Ri Hae
Nam, the brewery's assistant chief engineer,
fiddling with the zip of his dark jumpsuit, the
type so favoured by Kim Jong Il. The Dear
Leader, who is also rumoured to like a tipple,
visited the brewery shortly after it opened and
gave a little on-the-spot guidance. "He told us
to work to achieve greater quality," recalls Ri.
"We produce our beer mindful of the love of Kim
Jong Il."
The story begins with Kim, who, in 2000, decided
he wanted a world-class brewery and, through a
German agent, answered an advertisement for the
Ushers brewery. "When they first approached us I
assumed it must be the South Koreans," recalls
Peter Ward, who helped seal the deal. "I was a
bit shocked when I heard they were from the
North." Once he had got over the surprise, Ward
had two practical concerns. The first was money:
how would the impoverished North pay? The second
was security: the technology for fermenting
yeast bears more than a passing resemblance to
that for fermenting germs.
Once Ward was satisfied that Pyongyang wanted
beer, not bugs, the deal was closed, and in late
2000 a team of 12 North Koreans arrived in
Trowbridge. They were to spend the next five
months there, living just outside town, close to
a supermarket with a reassuringly stable supply
of rice.
Soon the entire place - milling machines,
brewhouse, fermenting vessels, yeast handling
plant - was on its way to Pyongyang. Says Ward:
"They literally hacked the place to pieces."
In April 2002, the brewery was successfully
started up again, producing green three-quarter-
litre bottles sporting a picture of the Taedong
river, which runs through the capital. Of
course, says Ri, it was all "thanks to the
leadership of Kim Jong Il".
The brewery's development has been accompanied
by what Pyongyang calls adjustments, economic
changes that have brought big hikes in prices
and wages, but also brought farmers' markets,
kiosks and stalls to the streets, providing the
first signs of commercial life in years.
Restaurants have sprung up too - not private,
insist the Koreans, but with private investment -
usually Korean-Japanese. Most are quite keen on
Taedonggang beer. Samples taken by this
correspondent, and a straw poll of foreign
diplomats and agency workers, do at least
confirm one thing - logical or not, the beer
isn't bad.
Ian Williams
Officials of Cabinet Secretariat Assist Builders
of Taean Friendship Glass Factory
Pyongyang, October 4 (KCNA) -- Senior and other
officials of the Secretariat of the DPRK Cabinet
Sunday assisted the builders of the Taean
Friendship Glass Factory. After the grand ground-
breaking ceremony on July 1 the builders there
successfully carried out the blasting of 300,000
cubic meters of earth and then have
energetically pushed ahead with ground-leveling,
excavation of the foundation and concrete
tamping. Now they are hastening preparations to
enter into the main project in the final stage.
the factory, the best symbol of DPRK-China
friendship, as
External Economic Legal Advice Office in DPRK
Pyongyang, October 4 (KCNA) -- The External
Economic Legal Advice Office under the Central
Committee of the Korean Bar Association gives
legal service to foreign corporate bodies and
Korean institutions, enterprises and trade
officials as regards external economic
activities. Its mission is to settle legal
issues regarding international economic
investment and trade relations.
It, founded in June Juche 88(1999), has experts
with the qualification of lawyer of the Korean
Bar Association, and rich knowledge and
experience about international and Korean trade
and economic laws.
It has fairly done over 100 cases of legal
representation and legal service to guarantee
safety to the economic transactions of local and
foreign enterprises.
NK's Western-Styled Clothes Surface As Mainstay
Export Item to Japan
- North Korea has built up a high class brand
image by using fabrics made in Italy.
- The clothes have surfaced as the 2nd largest
export item to Japan from North Korea, following
the clams.
[KOTRA North Korea Team/ Fukuoka Branch]
According to the September 4th issue of the
Diamond, a weekly magazine in Japan, some of
North Korea's men's western-styled clothes used
fabrics made in Italy, and with the quality of
the products becoming higher, the communist
country's image of makers of cheap products is
changing within the Japanese market.
According to North Korea-Japan trade statistics,
even though North Korea's exports to Japan in
2003 decreased about 40% from JY5.243 billion in
2002 to JY2.929billion, its men's western-styled
clothes have surfaced as the 2nd largest export
item to Japan, the first being their clams, by
building up an image of high quality and high
priced products, added the weekly.
Though there is no difference in the
manufacturing facilities of North Korea and
China, North Korea has the edge with their
sewing technology for hand-made western clothes.
Since the company makes it a rule to re-invest
20% of the wages to be paid to North Korea into
the plant's facilities, its Pyongyang plant has
been well equipped with European computer-aided
control machines, according to the company. A
company official has, meanwhile, said that the
longer the deadlock continues in the
negotiations for the normalization of diplomatic
relations between the two Asian countries, the
more likely that the trade exchange between the
two countries will not be activated. [Sanctions]
KLC to Delay Dedication of Kaesong Development
Office
[Yonhap,Sep.21th]
A state-run land development agency is likely to
postpone a ceremony to dedicate its development
office at an industrial park in North Korea to
October from late this week, a government
official said Tuesday
Pyongyang's Consumer Market Bustling with
Shoppers
[Yonhap,Sep.16th]
Pyongyang's first state-run consumer market is
thriving one year after opening, a pro-Pyongyang
newspaper in Japan said on Thursday. Choson
Sinbo, the organ of Chongryon, the General
Association of Korean Residents in Japan,
carried photographs and news about the market
and the people there on its latest Internet
edition.
Pyongyang was portrayed as no longer the gloomy,
gray city suffering from food shortages and lack
of light industry goods and energy of the 1990s,
according to the photos of the market. The
market was flourishing with merchants striving
to sell more goods to customers and locals
people haggling.
Also shown in the photos are passenger cars,
small trucks and buses in the parking lot, piles
of goods stacked in shops and shoppers who
crammed into the market. Every fruit stores are
full of fruits such as watermelons, apples,
melons and grapes, which could hardly be found
in Pyongyang in the 1990s.
Dedication of Kaesong Development Office Delayed
to Oct. 21
[Yonhap,Sep.26th]
A state-run land corporation will hold a
ceremony on Oct. 21 to dedicate its development
office at an industrial park in North Korea, a
government official said Sunday.
The construction of a pilot site was completed
in June, and 15 South Korean companies plan to
move to the site by the end of this year. The
South will allow about 2,000 South Korean
companies to relocate to the complex by 2020 to
benefit from low land and labor costs in the
North.
U.S. Defers Decision on 39 Items S. Korea Hopes
to Bring to N.K.
[Yonhap,Set.24th]
The United States has cleared the shipment of
most products South Korea hopes to transport to
an industrial complex in North Korea, but has
deferred a decision on 39 items, an official
said Friday. The two sides held working-level
talks in Washington on Monday and Tuesday to
review a list of machinery and equipment that
South Korean companies want to relocate to the
industrial zone currently under construction in
the North Korean border city of Kaesong.
The United States can ban the shipment of
"strategic products," such as precision
machinery and high-tech computers, to countries
considered supporting terrorism like the
communist North, if those products are U.S.-made
or more than 10 percent of their parts are
sourced from the U.S.
The U.S. rule, known as the Export
Administration Regulations, is in line with the
Wassenaar Arrangement, a multilateral regime
aimed at preventing the flow of "strategic
products" to countries listed as supporting
terrorism. In the first stage, a total of 15
South Korean factories plan to move to a pilot
site of the Kaesong complex by the end of this
year. They have sought U.S. permission for a
total of 1,200 items they want to take with them.
[Sanctions]
Consumer goods Market in Thongil Street Crowded with Many People
A panoramic view of the market [photos]
The consumer goods market in Thongil Street, Rakrang-district, Pyongyang, is
crowded with people every day.
As part of the improvement of the economic management of socialism which was
started in July 2002, the DPRK took major steps in March of last year to expand
form products markets to consumer goods ones. The 6,000 square meter market in
Thongil Street was constructed as a model consumer goods market in August of
last year.
One year has passed since then, and assortments of goods have grown and their
quantity is being improved day by day. Today, 100 thousand~150 thousand people
visit the market every day.
There are various kinds of commodities in the market-- foods, other necessities
of life, furniture and electric appliances as well as art objects.
Kim Sun Ok, manager of the market, said, "This market is run for the
convenience of people. Exchange of commodities have increased in the past year
and the market enjoys a good reputation among people."
[Marketisation] [Economic reform]
Railroad says Korean-built bullet train is not
fit to run
The Korean National Railroad says tests of South
Korea's self-designed bullet train, the G-7,
have turned up serious flaws that could push
back the target date for its rollout on the
Seoul-Jeolla province line.
Fully developed by the Korea Railroad Research
Institute in late 2002, the plan was to purchase
100 trains, for an estimated 300 billion won
($250 million), and put them to work on the
Seoul-Jeolla province line by 2007.
But a document on a trial run, submitted to
Representative Cho Gyeong-tae of the governing
Uri Party by the Korean National Railroad,
exposed major problems in the train's core
components, and in parts that affect its ability
to accelerate and deaccelerate.
Jonghyang-branded Luster Paint Made in DPRK
Pyongyang, September 27 (KCNA) -- The Korea
Rakwon External Technology Service Center of the
Democratic People's Republic of Korea produces
pearl-like luster paint. The Jonghyang-branded
paint is made with highly water-proof synthetic
resin as an additive.
It is used to paint interior and exterior walls
and ceilings of public and dwelling buildings.
Painted on the surface of concrete, wooden
board, strawboard and vinyl wallpaper, it
neither crack nor loosen as it has a strong
adhesive power.
It, with a high pyrogenic and adsorbent nature,
is also strong in rust-proofing.
One kilogram of Jonghyang is enough to paint two-
three square meters.
It has found its way to Malaysia and various
other countries.
Jong Jong Gun, chief of the center, told KCNA
that the center produces various painting
materials including ordinary exterior and
interior, rust-proof, anti-foul, oil-proof, acid
resistant painting materials and oil painting
materials according to orders
Spanish authors hit jackpot with good luck bible
Giles Tremlett in Madrid
Sunday September 26, 2004
The Observer
They may come from a land famed for siestas and
'mańana' culture but two Spanish authors are
teaching the world how to triumph in business
with a fairytale story that has become an
unlikely global publishing phenomenon.
Good Luck, a book full of wizards, knights and
four-leaf clovers that took authors Fernando
Trías de Bes and Alex Rovira just eight hours to
knock out in its first draft, is selling 10,000
copies a day in Japan. It is close to notching
up worldwide sales of one million in countries
as varied as Germany, Indonesia and North Korea
as the authors, two young marketing consultants,
admit they are the first ones to have got lucky
from it.
National Exhibition of Farm Machines
Suan, September 23 (KCNA) -- The 31st National
Exhibition of Farm Machines was open in Suan
County from September 21 to 23. On display were
105 new machines of 9 kinds and minor farm
implements contrived and manufactured by farm
machine researchers and technicians and
agricultural workers and hundreds of pieces of
accessories of rolling stock.
Drawing the attention of the visitors were
highly efficient sowing machines, harvesters and
thrashing machines for potato, soy bean and two-
crop farming, serviceable minor farm implements
and accessories.
Food Exhibition Held in Pyongyang
Pyongyang, September 24 (KCNA) -- A national
local special food exhibition took place at the
People's Palace of Culture here on Thursday. On
display there were nearly 1,000 dishes presented
by some fifty organizations in Pyongyang and
provinces.
It was held, divided into provincial special
food exhibition, folk holiday food exhibition
and local bean paste exhibition.
White Pine-nut Trees Grow in DPRK
Pyongyang, September 23 (KCNA) -- White pine-nut
trees are growing thickly to form a forest in
Raengjong-gol village, Rinsan County of North
Hwanghae Province, the Democratic People's
Republic of Korea. The forest has been formed
from a white pine-nut tree, a new species of
pine-nut tree found in a valley of the county
ten years ago.
The white pine-nut tree, considered to be a
special variation in the plant kingdom, is
drawing a great attention of the academic
circles.
Cross-Border Office Construction Kicks Off
By Jung Sung-ki
Staff Reporter
The construction of cross-border control
offices, ``Office of South-North Transit'',
kicked off near the Demilitarized Zone (DMZ) in
preparation for the completion of both cross-
border railroads and roads reconnections in the
near future, government officials announced
Friday.
The ongoing project of reconnecting roads,
dubbed the ``Kyongui Highway'', and a parallel
railway in the western part of the border just
north of Seoul is one of the key inter-Korean
economic projects, which is set to operate next
month as a pilot program.
The two offices for the cross-border roads and
railways, planned to be a two-story building,
will be constructed at the site of 4,600 (some
1.5 hectares) and 2,400 pyong (some 0.8 hectare)
respectively near the Dorasan Railway Station,
some 60km north of Seoul, according to an
official from the Unification Ministry.
NK Backtracks, Extends Invitation to GNP Lawmakers
By Park Song-wu
Staff Reporter
North Korea prioritized economic benefits over politics when it changed its
mind to allow a group of Grand National Party (GNP) lawmakers to visit the
Kaesong industrial complex, located just North of the demilitarized zone,
officials in Seoul said.
On Friday, Pyongyang snubbed 11 GNP legislators who applied to visit the
inter-Korean industrial complex. But it took only three days for the communist
country to change its mind over their visit.
South Korean officials said Pyongyang notified Seoul Monday of its decision to
send invitations soon to the 11 lawmakers, who belong to the National
Assembly's Construction and Transportation Committee.
New Traffic System in Seoul Drawing International Attention
By Na Jeong-ju
Staff Reporter
Seoul City's new mass transit system, which got off to a rough start in early July due to malfunctioning traffic measures, is now gaining attention from traffic experts from other countries for some new ideas it had adopted to support the transit system.
Seoul City officials said the new electronic payment system, which gives a discount when passengers transfer from subways to buses and vice versa, and a traffic center which controls the operation of public buses are becoming models for some countries pursuing similar changes.
Chinese Investment in North Korea Heats Up
[Beijing, KOTRA]
Recently, investment into North Korea by Chinese companies has increased dramatically.
Not long before, the Zhongshi Group invested 50 million yuan into the Jeil Department Store in North Korea and the companyˇŻs president launched to manage it with 300 traders from his hometown of Wenzhou, which triggered further investments into North Korea.
Chinese companies had done well in North Korea before the Zhongshi Group launched its business within the country. A joint venture company between China and the NK, Chenshi Siongmao Computer Co., Ltd. is the only PC manufacturer in North Korea and started their manufacturing in September, 2002. A subsidiary of Shenyang Wujin Group launched a joint-venture factory for engine oil in North Korea that monopolizes the engine oil market there.
Professor Xu added that the NKˇŻs most important driving force to attract Chinese capital is their internal reform and, subsequently, North Korea seeks utility-oriented change and pushes ahead to improve productivity and conducts a coordinated economic policy covering various sectors of the nation.
U.S. May Okay S. Korean High-Tech Exports to Kaesong Park
[Yonhap,Aug.31th]
An initial review by the United States has found that most goods South Korea plans to bring to an industrial complex under construction in North Korea are not banned under regulations controlling exports to countries considered to support terrorism, like the North, Seoul's foreign minister said. South Korea and the U.S. have been in talks over the latter's move to restrict the inflow of such goods as high-tech computers and precision machinery into the industrial zone being built in the North Korean border city of Kaesong.
[Sanctions] [Friction]
N.Korea, Russia Reach Agreement on Rail Link
[Yonhap,Aug.26th]
Some sort of agreement was reached between North Korean and Russian leaders on linking an envisioned inter-Korean railway with Russia's Trans-Siberian Railway (TSR), a South Korean businessman said Thursday.
"I heard the chairman of North Korea's National Defense Commission, Kim Jong-il, and Russian President Vladimir Putin have reached some kind of agreement on linking the railways," Kim Yoon-kyu, head of Hyundai Asan, said at a seminar.
He did not specify the details of the agreement. South and North Korea are seeking to reconnect the Donghae (East Sea) rail line, which was severed shortly before the 1950-53 Korean War, and ultimately, link it to the TSR. The Donghae line, if reconnected, would connect South Korea's eastern port city Gangneung across the demilitarized zone to North Korea's east coast city Chongjin.
Kim added that the two Koreas, along with Russia, may hold a couple more high-level talks on connecting railways. "If Korea is to serve as a peninsula, a railway that runs into the continent has to operate," Kim said.
World-OKTA Delegation Visited N.K for Negotiations Concerning Pyongyang Trade Consultation Meeting
[ North Korea Team, KOTRA]
Prior to the forthcoming 3rd World Korean Business Convention and the 9th Overseas Korean Economic Community Convention both to be held at Jeju, South Korea, in October, a delegation from the World-OKTA (Overseas Korean Traders Association), a global organization of overseas Korean traders, paid a visit to Pyongyang in the period of July 27 to 31, to discuss the possibility of holding an ˇ°OKTA-Pyongyang Trade Consultation Meeting.ˇ± Led by Lee Young-hyun, the Chairman of the World-OKTA, the delegation included Cheon Yong-su and Joh Long-je, Vice Chairmen for international affairs and had a successful meeting with the NKˇŻs Korean Committee for the Promotion of International Trade and Korean Committee for the Relief of Overseas Koreans.
At the meeting, the both sides signed a written agreement to hold the OKTA-Pyongyang Trade Consultation Meeting in the period of October 21 to 25 this year.
Wenzhou Merchants in China Plan to Invest in the First Pyongyang Department Store
[Qingdao, KOTRA]
It is now known that the merchants in the Wenzhou district of China are planning to lease, as well as, invest a large amount of money in the First Pyongyang Department Store, which boasts the biggest scale of such a store in North Korea. They have already embarked on their project for the Pyongyang-based department store.
Being located within the central business zone of the city of Pyongyang, the First Pyongyang Department Store shows off its 360,000 sq. m of business area.
Jeong Chang Bao, CEO of the Shenyang ZhongShi Group, as well as, being the chairman of the Commerce Department in the Wenzhou-Shenyang corporation will take charge of the leasing and managing of the First Pyongyang Department Store. For the first 10 years of the leasing period, the First Pyongyang Department Store is going to provide light industries products, as well as, daily commodities that North Korea has suffered from having such items in short supply, such as clothes, shoes and home electronics.
Local Banks Apply to Set Up Branches in N. Korean City
[Yonhap,Aug.10th]
Seven South Korean banks have submitted to the government letters of intent to set up branches in Kaesong, a city just north of the inter-Korean border, bank industry sources said Tuesday. The offices are to provide financial services to more than 1,000 South Korean garment and other labor-intensive companies planning to move into an industrial complex there in the future.
Seoul, Washington in Talks over Kaesong Industrial Complex
[Yonhap,Aug.6th]
South Korea and the United States have opened discussions on Seoul's plans to send key facilities and materials for an industrial complex being built in the North Korean border town of Kaesong, officials said Friday. The working-level talks, which have been under way in Seoul and Washington since last month, focused on a number of key facilitates South Korean companies need to take to the communist country to run their factories, the officials said.
[Sanctions] [Friction]
Regulation on Real Estate in Kaesong Industrial
Zone Adopted
Pyongyang, August 25 (KCNA) -- The Presidium of
the Supreme People's Assembly of the DPRK
promulgated ordinance No. 33 "On Adopting
Regulation on Real Estate in Kaesong Industrial
Zone" dated July 29, Juche 93 (2004). The
regulation on real estate in Kaesong Industrial
Zone requires the Cabinet of the DPRK and
institutions concerned to take technical
measures to implement the regulation.
The regulation has 4 chapters and 58 articles.
Its aim is to establish a strict order in real
estate acquisition and deal in the zone and help
enterprises and individuals conduct smooth
business and provide them with good living
conditions.
Summit to Boost Railway Project
This is the fifth in a series of articles on the
upcoming summit between President Roh Moo-hyun
and his Russian counterpart Vladimir Putin. -
ED.
By Ahn Byung-min
Director of Policy and Market Analysis Division,
The Korea Transport Institute
President Roh Moo-hyun's official visit to
Russia will provide a good opportunity to
strengthen the focus on pending issues between
the two countries, especially the project to
link the Trans-Korean Railway (TKR) and the
Trans-Siberian Railway (TSR).
Kaesong Bus Service Starts
SEOUL (Yonhap) - A South Korean shuttle bus has
traveled across the heavily fortified border
Monday to a North Korean border town as a first
test operation, Hyundai officials said.
The bus carrying South Korean workers to the
North Korean city of Kaesong, where local
businesses are building a huge industrial
complex, is expected to return later in the day,
they said.
British company strikes first deal for oil
prospecting in North Korea
Frank Kane
Sunday September 19, 2004
The Observer
Aminex, the British oil minnow listed on the
Dublin stock market, is set to announce a major
coup in the fiercely competitive global
exploration business.
The company, under chairman Brian Hall, has
clinched a deal with the government of North
Korea to explore and develop all the country's
potentially oil-bearing territory, with a
decisive say in production. It is believed to be
the first agreement between a western company
and the notoriously anti-capitalist country,
named as part of the 'axis of evil' by President
George Bush.
The oil resources of North Korea have been
neglected since the limited involvement of the
Soviet industry ceased two decades ago. But
Korea Bay's proximity to the proven productivity
of the Bohai Bay region of China has convinced
Aminex of its potential.
Opening ceremony called off in North
The National Assembly has called off a trip to
the Gaeseong Industrial Complex because of a
North Korean snub to 11 legislators of the
opposition Grand National Party.
The 11, part of a delegation from the
Construction and Transportation Committee to
attend an opening ceremony for the complex, were
the only assemblymen not to receive invitations
from the authorities in Pyeongyang.
The Korea Land Corporation said yesterday that
248 other South Korean officials on the
delegation did receive invitations.
Kim Jong Il Visits Exhibition of High-Yielding
Crops
Pyongyang, September 18 (KCNA) -- Kim Jong Il,
general secretary of the Workers' Party of
Korea, chairman of the National Defence
Commission of the DPRK and supreme commander of
the Korean People's Army, gave field guidance to
the work in the field of agriculture, looking
round the exhibition of high-yielding crops. On
display at the exhibition were high-yielding
grain crops, vegetables, industrial crops and
other agricultural products from various army
and civilian farms, farm-machines and seed-
selecting and storing facilities
the People's Army, in particular, is admirably
playing a pace-setter's role in the
implementation of the WPK's policy for the
agricultural revolution. [Songun] [Role of NK military]
NK Snubs GNP Lawmakers for Kaesong Ceremony
By Jung Sung-ki
Staff Reporter
North Korea has rejected a visit by a group of
lawmakers from the conservative Grand National
Party (GNP) to the site of the inter-Korean
industrial complex in Kaesong, the Korea Land
Corporation said Saturday.
The 11 GNP lawmakers from the National Assembly
committee for construction and transportation
were supposed to visit Kaesong on Tuesday to
attend a ceremony to mark the completion of a
South Korean office building at the complex.
Among 259 South Korean applicants, however, only
the GNP lawmakers failed to receive the
invitation letters from Pyongyang, according to
the state-run land developer, co-host of the
event.
Tongil, or Unification, Market.
Pyeongyang citizens packing the Tongil, or
Unification, Market. The state-run Korea Central
News Agency released the photo yesterday to mark
the first anniversary of the opening of the
market, which is said to operate on supply and
demand principles
North Korea Operates a Restaurant in Vietnam
[Hanoi, KOTRA]
It was confirmed that a North Korean restaurant opened in October of
last year, 2003, in Ho Chi Minh city, Vietnam, has been in operation.
The 'Pyongyang Daedonggang Restaurant' located in Ho Tung Mau, in
the downtown area of Ho Chi Minh city has about 14 employees, not
counting the president.
North Korea-Syria Agreement on Cooperation in Trade, Science &
Technology Concluded
[Amman, KOTRA]
On September 1, 2004, North Korea made an agreement with Syria for
their mutual cooperation in the economic, trade, science and technology
fields. For the agreement, which was concluded in Syria's capital of
Damascus, the Syrian minister of economy and trade and the NK's
minister of trade participated.
Signing the agreement which also includes their cooperation within the
area of the fast mail service and the technical service for telecom and
data processing fields, the two countries vowed that they will closely
collaborate in carrying out the needed protocol.
A Special Group of Japanese Reporters Reports Upon the NK's Actual
Economic State
- Extreme economic gap between urban and rural regions-
- It required about 300,000 yen for a trip to North Korea for over an 4-5
nights stay -
he weekly reported in a special issue, entitled 'Kim Jong Il's Economy,' on
the induction of a capitalistic economy within the major cities, which has
been changed drastically since the 7.1 economic reformation in North
Korea. It shows that North Korea has begun to adopt some incentive
systems and the private operation of stores are emerging from its one-
sided planned economy after its economic reformation, but its concrete
realities are still hidden behind a veil.
Activists Urge U.S. to Ease Rules on N. Korean Industrial Park
[Yonhap,Sep.14th]
A total of 13 civic activist groups presented a written opinion to the U.S.
Embassy in Seoul on Tuesday, calling for the easing of restrictions on
sending strategic materials to North Korea's Kaesong industrial park.
"The Kaesong project is a symbol of South and North Korean
reconciliation, peace and prosperity, and it is being built for peaceful
economic cooperation," said the letter, asking the U.S. government to
support the project. [Sanctions]
S. Korean Technicians to Stay in N.K. for Border Railway Stations
[Yonhap,Sep.12th]
South Korean technicians will stay in North Korea beginning this week
to help build modern railway stations on the northern side of the heavily
fortified inter-Korean border, South Korean officials said Sunday. The
unspecified number of technicians, who will stay during the week and
return to the South on weekends, will be in charge of providing technical
assistance in the building and repairing of railway stations in the North.
South Korea will finance the cross-border project by providing technical
assistance, equipment and construction materials, while the North offers
labor
When built, the North Korean railway stations will serve as the main
gateway for South Korean rail travelers to the North. The inter-Korean
border is only 56 kilometers from Seoul.
South and North Korea are working to reconnect two sets of cross-
border railways and parallel roads through eastern and western sections
of the border under agreements reached during the historic inter-Korean
summit in 2000. South Korea has already completed its side of a cross-
border railway and its border station. North Korea has yet to finish work
on its side of the railway.
In June, the two Koreas agreed to open the two sets of cross-border
roads and make test runs on adjacent railways in both sections across
the border in October. The western cross-border transportation link,
when completed, will go to a large-scale industrial park being built in
North Korea by South Korea's Hyundai Asan Corp. and state-run Korea
Land Corp.
The park is mainly for hundreds of South Korean garment and other
labor-intensive plants that want to relocate there in search of cheap but
skilled North Korean labor. The transportation links and industrial park
are among the most visible by-products of the historic inter-Korean
summit in 2000, which spurred wide-ranging exchanges between the
Koreas.
Tractor "Chollima-2000" Proves Effective
Pyongyang, September 15 (KCNA) -- The Kum Song
Tractor Plant of the Democratic People's
Republic of Korea is manufacturing tractor
"Chollima-2000". The new model, with a hydraulic
steering wheel and direct jet diesel engine, has
a big pulling power while consuming a small
amount of fuel.
The vibration and sound of the engine in
operation are as low as motorcar.
All the accessories of the tractor are precisely
processed and assembled with the help of ultra-
modern technology.
The tractor is easy and convenient to operate.
Its working speed is 7 kilometers per hour and
turning radius 3 meters.
Leader Kim Jong Il watched the tractor in
operation during his field guidance to a farm
and said that it was a good and well-shaped
tractor.
4 More Firms Approved for Kaesong Complex
By Jung Sung-ki
Staff Reporter
The South Korean government on Thursday allowed
four more companies to do business at the inter-
Korean special economic zone in Kaesong, North
Korea, which is scheduled to launch in November.
The newly approved companies include SJ Tech, a
plastic manufacturer; Hosan Ace, a machinery
maker; Shinwon, an apparel firm; and Living Art,
a kitchenware maker.
The selected firms have reportedly deleted
restricted goods from their lists of equipment,
or replaced them with suitable items to be taken
into the Kaesong Industrial Complex, due to an
international agreement to ban the export of
``strategic products'' to countries allegedly
supporting terrorism.
[Sanctions]
Canada's Export to North Korea Sharply Increases
[Vancouver, KOTRA]
According to Canadian statistics, Canada's exports to North Korea have
continually increased.
In 2003, Canada's export to North Korea grew to US$21 million, up 346% from $14
million in the preceding year when the shipment witnessed an annual growth rate
of 57%.
North Korea has continually imported grain, wood pulp & lumber, inhalers for
therapeutic ozone and oxygen, plants for feeding animals etc. The NK's import
of other items has been in great fluctuation.
Canada largely imports printed materials, input and printing computer
peripherals, miniature assembly kits, etc. from North Korea, worth about
$50,000-100,000 per annum.
In the first half of 2004, among Canada's import items from the NK, parts for
automatic data processing machines showed the steepest increase. Import of
piano parts and weighing equipment was also on a rapid rise.
*Source: National Statistical Office of Canada
(Sept. 1, 2004 KOTRA-North Korea Team, Koo Kyung-hee, Tel: 82-2-3460-7423)
N. Korean Liquor Wins FDA Approval, to be Sold in U.S. Next Month
[Yonhap,Sept.7th]
A North Korean distilled liquor has recently won the approval of the U.S. Food
and Drug Administration and is expected to hit the market next month, a source
here said Tuesday.
The source, who asked not to be named, said the first shipment of around
100,000 bottles of Pyongyang "soju" will arrive at New York and Los Angeles via
a Chinese port.
The Pyongyang soju is imported by Korean-American businessman Park Il-woo. The
price has not been set yet but the source said it will be sold at around US$6,
similar to the price charged by South Korean distillers.
Soju is a popular liquor in both South and North Korea, but defectors said it
is beyond the means of ordinary North Koreans. In July, the North's
state-controlled Korean Central News Agency said the distribution network for
the traditional liquor has already been set up in the United States and the
prospect of sales is bright, adding that other North Korean liquors could be
also available in the future.
Seoul to Approve Local Firms' Operations in N.K. Complex This Week
[Yonhap,Sept.7th]
South Korea is scheduled to endorse this week a plan by a group of local firms
to move into the pilot site of a huge industrial park being built in North
Korea's border town of Kaesong. Of the 15 companies, about eight are likely to
win the government's blessing as early as Wednesday as they are reportedly
involved in garment and other labor-intensive businesses that do not need
strategic materials to run their plants.
The seven other firms appear likely to win government approval as soon as
Seoul's consultations with Washington over the export of strategic items are
concluded.[Sanctions]
Hop the bus to the North
The Unification Ministry said yesterday that
shuttle bus services from Seoul to Gaeseong in
North Korea will begin later this month.
The service is for the benefit of businessmen,
workers and officials at the industrial complex
to be established there.
On Sept. 20, Hyundai Asan will begin test
operations of the bus service five days a week,
with two round trips per day.
Hyundai was awarded the contract for the service
yesterday, the ministry said.
Buses will leave from Gwanghwamun in central
Seoul for the 80-kilometer trip, which will take
an estimated two hours. Fares will be between
10,000 won ($8.70) and 20,000 won.
A ministry official said, "The South Korean
government is negotiating with the North Korean
government to allow travelers to enter the
Gaeseong complex by informing the North the same
day."
Currently, in principle, the South must give a
list of travelers to the North three days in
advance.
Woori to set up shop north of the border
The Ministry of Unification said yesterday that
Woori Bank had won the rights to set up a bank
branch in the Gaeseong Industrial Complex in
North Korea.
Woori was selected over six other banks bidding
to serve the economic cooperation project
between North and South Korea.
According to a Woori Bank official, the branch
office in North Korea will probably open in
November. He said the office size and number of
employees have not yet been decided.
It will provide banking services such as
currency exchange, account management and
remittances to South Korean companies operating
inside the industrial complex.
The bank would be the second Seoul bank in the
North; Korea Exchange Bank opened a small branch
at the KEDO nuclear project construction site
there in 1998.
Seoul Pushes Ahead With Kaesong Industrial Project
By Reuben Staines
Staff Reporter
Production at the Kaesong Industrial Complex in North Korea will begin in
November if everything goes according to plan, a Unification Ministry official
said Thursday after the government announced seven manufacturers, a bank and
shuttle bus service to operate at the inter-Korean business zone.
``Inter-Korean dialogue may have been thrown off track recently but the
ministry has still been busy working on economic cooperation, including the
Kaesong project,'' Unification Vice Minister Rhee Bong-jo told reporters during
a briefing.
Naumann Organizes Economic Workshop in Pyongyang
A workshop on economic reform and the
development of economic relations between the
European Union and North Korea took place in
Pyongyang from Aug. 31 to Sept. 4.
The European Commission and the Friedrich
Naumann Foundation organized the workshop, with
the assistance of the German and other EU
Embassies in Pyongyang. North Korea's foreign
ministry hosted the event.
The objective of the workshop was to share
experiences with the communist country in
economic modernization processes, in particular
the transition from centrally planned to market
oriented economies.
7 companies receive Gaeseong go-ahead
The government granted seven companies
permission yesterday to begin business at the
inter-Korean Gaeseong Industrial Complex.
Unification Minister Chung Dong-young announced
the approvals.
The companies were selected because the
equipment and technology they employ is not
barred from transfer to North Korea under a U.S.-
led international agreement. Small- and medium-
sized manufacturers will begin producing
electronic goods and fuel pumps before the end
of the year.
The businesses will hire more than 700 North
Korean workers. Another eight firms are waiting
for Seoul's permission to open plants.
The U.S.-led Wassenaar Arrangement on Export
Controls for Conventional Arms and Dual-Use
Goods and other agreements bar the transfer of
sensitive technology to countries, including
Iran, Cuba and North Korea.
[Sanctions] [Kaesong]
New Method of Viticulture Introduced in DPRK
Pyongyang, September 3 (KCNA) -- The Pomiculture
Institute of the Academy of Agricultural
Sciences of the Democratic People's Republic of
Korea has succeeded in growing grapes by making
use of building walls. In recent years, it has
planted tens of thousands of grape saplings in
different parts of the country. It has reaped a
high yield without using arable land while
adding beauty to towns.
A hundred and scores of clusters of grapes are
gathered from a seven or eight-year-old grape
vine.
Jong Jun Thaek Wonsan University of Economics
Pyongyang, September 6 (KCNA) -- Jong Jun Thaek
Wonsan University of Economics is a center of
economic education in the Democratic People's
Republic of Korea. It, founded on September 1
Juche 49 (1960), was named after Jong Jun Thaek,
a patriotic martyr, who was infinitely loyal to
the Workers' Party of Korea and President Kim Il
Sung.
It consists of planned economy, material supply
and labor administration, financial economy,
commercial management, trade economy and other
faculties, and scores of chairs, a research
institute, a doctoral institute, a library, a
publishing house and an information center.
EU Holds Workshop in North Korea on Economic Reform
Yonhap,Sept.3th]
The Delegation of the European Commission to Seoul held a workshop in North Korea this week on economic reform of the communist country, an official at the delegation office here said Friday. Hosted by the North Korean Foreign Ministry, and cosponsored by the European Delegation and the Germany-based political think tank Friedrich Naumann Foundation, the five-day workshop began Tuesday in the North's capital, Pyongyang, according to the official.
More than 70 North Korean officials from various institutions including the Ministry of Foreign Affairs and the State Planning Committee, as well as from Kim Il Sung University, participated in the workshop to share experiences in economic modernization, the official said.
Also present at the EU-North Korea workshop were two officials from the European Commission Delegation in Seoul, Guy Ledoux and John Sagar, along with Radinck Van Vollenhoven, the ambassador of the Netherlands to Seoul, and Glyn Ford, a member of the European Parliament, according to the official.
The workshop opened with a welcoming speech by the North's Vice Foreign Minister Kim Sok-ung, and included group discussions and presentations to examine the North's economic reform, according to a statement released Friday by the Delegation of the European Commission in Seoul.
According to the statement, North Korean officials tried to explain some of the economic measures that have been implemented since 2002, while European experts and political analysts offered the commission's experience in training and providing development assistance to countries undergoing economic reform.
European business representatives also pointed out specific actions they would like to see being taken by European and DPRK authorities to improve trade and investment between the two sides, the statement said, referring to the North's official name, the Democratic People's Republic of Korea.
The participants are also scheduled to make several field trips, including one to a newly established special economic zone in the North's border town of Kaesong, at which South Korean companies are also looking to establish factories, for the next two days, according to the statement, to directly observe some of the economic and commercial initiatives taking place in the North.
UN tells North Korea to protect its environment
Jonathan Watts in Beijing
Saturday August 28, 2004
The Guardian
North Korea must take urgent action to protect
its environment, the UN environment programme
said yesterday, publishing its first report on
the deforestation and pollution caused by more
than a decade of famine and economic hardship.
It said the search for food and fuel had led to
the felling of a tenth of the country's trees
since 1990, threatening the habitats of rare
species and increasing the risk of soil erosion
and flooding.
Although the authors admit that much of the
information is old and incomplete, the study and
its publication - both done with the cooperation
of the North Korean authorities - is hailed as a
breakthrough.
UNEP launches first report on the State of the Environment in the DPR Korea
(Press release)
Nairobi, 27 August 2004 - The first assessment of the state of the environment of the Democratic People's Republic of Korea (DPRK) was launched today by the United Nations Environment Programme (UNEP) and DPRK officials at UNEP headquarters in Nairobi.
The State of the Environment report was produced in partnership with the United Nations Development Programme (UNDP) and was initiated following a visit by Executive Director Klaus Toepfer to DPR Korean capital Pyongyang in 2000.
DPR Korea officials from 20 different government and academic agencies produced the report with training and guidance from UNEP's assessment office in Bangkok and the UNDP office in Pyongyang.
The report uses a "pressure-state-response" methodology and identifies priority issues related to forests, water, air, land and biodiversity. It also acknowledges a paucity of research and data on which to base reliable environmental assessments. The report, which was completed in late 2003, was released on the occasion of the visit of a high level DPRK delegation to Nairobi.
"By bringing together the available environmental information and identifying priority issues, the report will help strengthen monitoring and assessment, policy setting, action planning and resourcing in DPR Korea," Mr. Toepfer said.
The assessment notes that while three quarters of the country is forested, almost all is on steep slopes over 20 degrees. While forested area expanded from the 1950s with national planting campaigns, over the past decade forests have declined in extent and quality due to timber production, a doubling of firewood consumption, and wild fires and insect attacks associated with drought. A growing population - now estimated at 24.4 million people, 60 percent of who live in urban areas - and conversion of hilly land to agricultural production have also taken a toll on forests. In response the government has successfully encouraged community, youth and children's groups to establish tree nurseries and to participate in campaigns such as the National Tree Planting Day each March 2.
The government is currently strengthening legal control on effluent from factories by applying the "polluter pays principle" and has initiated mass media campaigns to inform the public of the need for water conservation.
Self-sufficiency in food production has been a national policy aim, however major crop yields fell by almost two thirds during the 1990s due to land degradation caused by loss of forest, droughts, floods and tidal waves, acidification due to over use of chemicals, as well as shortages of fertilizer, farm machinery and oil. Vulnerable soils require an expansion of restorative policies and practices such as flood protection works, tree planting, terracing and use of organic fertilizers.
Recognizing such issues, DPR Korea adjusted its legal and administrative framework, designating environmental protection as a priority over all productive practices and identifying it as a prerequisite for sustainable development.
"The Democratic People's Republic of Korea has shown its willingness to engage with the global community to safeguard its environmental resources and we must respond so it can meet development goals in a sustainable manner," Mr. Toepfer said.
Regulation on Real Estate in Kaesong Industrial
Zone Adopted
Pyongyang, August 25 (KCNA) -- The Presidium of
the Supreme People's Assembly of the DPRK
promulgated ordinance No. 33 "On Adopting
Regulation on Real Estate in Kaesong Industrial
Zone" dated July 29, Juche 93 (2004). The
regulation on real estate in Kaesong Industrial
Zone requires the Cabinet of the DPRK and
institutions concerned to take technical
measures to implement the regulation.
The regulation has 4 chapters and 58 articles.
Its aim is to establish a strict order in real
estate acquisition and deal in the zone and help
enterprises and individuals conduct smooth
business and provide them with good living
conditions.
Unification Corn to Debut in S. Korean Market
A South Korean foundation said Friday that it
will put corn jointly produced with North Korea
up for sales here and appealed for the people's
participation.
The ``unification corn'' was jointly developed
by researchers of the two Koreas to help the
North increase its production of the cereal, the
International Corn Foundation (ICF) said.
ICF chief Kim Soon-kwon, better known as ``Dr. Corn,'' helped North Korea in
1998 to increase its corn yield by donating ``super corn'' seeds he had
developed to help alleviate chronic food shortages there.
One S. Korean Bank to be Allowed at Kaesong Industrial Park
[Yonhap,Aug.21th]
The Financial Supervisory Service (FSS) said Saturday that it will allow one branch office of a South Korean bank at an industrial complex to be built in North Korea for southern firms.
The regulatory agency said guidelines for authorizing bank operations in Kaesong, a city just north of the Demilitarized Zone, will be similar to those for bank branches abroad. Seven banks have applied to establish the branch office and the FSS will select one after consultation with the Unification Ministry, the agency said.
Kookmin, Woori, Shinhan, Hana and Korea Exchange Bank have shown interest as well as the Korea Development Bank and the Industrial Bank of Korea. A decision on the branch is expected to reached in September.
The industrial park is the centerpiece of a joint effort by the two Koreas to further expand economic cooperation. South Korean companies are expected to build a plant at the pilot site within the year. The FSS said the bank in Kaesong will provide money transfer and trade-related services to companies in the industrial park.
Foreign Firms Interested in Inter-Korean Industrial Park
[Yonhap,Aug.20th]
Foreign companies have expressed interest in the industrial complex in the North Korean border town of Kaesong, leaving South Korean authorities wondering whether to allow them access to the inter-Korean facility, a state-run real estate firm said Friday.
Korea Land Corp. (KLC), which picks the companies that can operate there, said many foreign firms, including big-name multinationals, have shown interest in the complex. Although no details were disclosed, earlier reports confirmed that a number of German companies have inquired about the procedures necessary to build plants in the complex.
Formation and Operation of the "Launch Preparatory Team" for Gaesong Industrial Complex Project Support Group
[Kaesong]
The government, in its attempt to provide a comprehensive, systematic government-level support to Gaesong Industrial Complex project, is now pursuing the establishment of Gaesong Industrial Complex Project Support Group with participation of seven ministries including the Ministry of Unification, the Ministry of Commerce, Industry and Energy, and the Ministry of Construction and Transportation, and is wrapping up the consultation with related ministries over that issue.
O Prior to the official launch of the support group, the government will form the Launch Preparatory Team for Gaesong Industrial Complex Project Support Group where the Ministry of Unification, the Ministry of Commerce, Industry and Energy, and the Ministry of Construction and Transportation will participate. The preparatory team will take charge of devising measures on pending issues and preparing for the launch and operation of the support group, among other things. Roles of the Launch Preparatory Team include:
- Taking measures for development and operation of the Gaesong Industrial Complex; resolving issues regarding taking in and out of strategic goods; seeking ways of support for enterprises moving into the industrial complex; planning the construction of infrastructure; preparing for the launch of the support group
? The Launch Preparatory Team will consist of eight staff members including one team leader (the chief of Economic Cooperation Support Division of the Ministry of Unification), five members from the Ministry of Unification, one from the Commerce, Industry and Energy, and one from the Ministry of Construction and Transportation.
O The formation of the Launch Preparatory Team for the Gaesong Industrial Complex Project Support Group indicates that the establishment of a government-wide support system for the Gaesong Industrial Complex development project now begins in earnest.
U.S. Denounced for Disturbing Construction of
Kaesong Industrial Zone
Pyongyang, August 21 (KCNA) -- Papers Saturday
carry commentaries denouncing the U.S. for
outrageously blocking the construction of the
Kaesong industrial zone which has entered into
its full-dress phase. In late July, the U.S.
held an "emergency meeting" in connection with
the construction of the Kaesong industrial zone
at which it informed the south Korean side that
the act banning the export of strategic
materials to the "countries listed as sponsors
of terrorism" would be applied to the south
Korean enterprises to entering the industrial
zone.
In this regard Rodong Sinmun says:
Such behavior of the U.S. is aimed to bar south
Korean enterprises from bringing equipment and
materials into the zone by applying the act
against the north and block the construction of
the zone at any cost. This is another brigandish
interference in the inter-Korean reconciliation
and cooperation and an outrageous and shameless
infringement upon the sovereignty of the nation.
Through this brigandish move the U.S. seeks to
stop the inter-Korean relations from improving
under the banner of the June 15 joint
declaration and save its colonial rule over
south Korea from its collapse at any cost.
The U.S. is deliberately putting a brake on the
construction of the zone, afraid that its rapid
progress would build a framework of inter-Korean
economic cooperation and bring the
reconciliation, reunification and prosperity of
Koreans earlier than expected.
The U.S. interference in the construction of the
zone is, in the final analysis, nothing but an
unreasonable action of those opposed to the
Korean nation's cause of reunification and an
act of aggression to deter the Koreans from
enjoying co-prosperity and meeting their common
interests.
Minju Joson in a commentary says that no matter
how desperately the U.S. works to hamper the
construction, the Koreans remain unshaken in
their will to successfully build the Kaesong
industrial zone as a treasure common to the
Korean nation by its concerted efforts and
achieve its co-prosperity.
U.S. Interference in Construction of Kaesong
Industrial Zone Flailed
Pyongyang, August 20 (KCNA) -- A spokesman for
the North Side's Delegation of the North-South
Committee for the Promotion of Economic
Cooperation on August 19 made public a statement
denouncing the United States for leaving no
stone unturned to put a brake on the
construction of the Kaesong Industrial Zone,
upset by its entry into a full-scale phase. At
"emergency consultations" held in late July U.S.
officials notified the south Korean authorities
that the regulations stipulating that strategic
materials shall not be exported to "those
countries listed as a sponsor of terrorism"
would be strictly applied to the south Korean
enterprises, too, advancing into the Kaesong
Industrial Zone, the statement noted, and said:
This glaringly laid bare the U.S. base intention
to strictly control the introduction of
equipment and materials for production into the
Zone and throw a stumbling block in the way of
inter-Korean cooperation, displeased with its
progress.
[Sanctions]
Korea Film Export and Import Company
Pyongyang, August 20 (KCNA) -- The Korea Film
Export and Import Company is now making posters
and pictorials as part of the preparation for
the 9th Pyongyang Film Festival. The company,
located in Taedongmun-dong, Central District,
Pyongyang, exchanges films with other countries
while producing films jointly with and receiving
orders from other countries.
After its foundation in April 1950, the company
has produced scores of films in collaboration
with various countries. Among them are feature
films "The Dependable Comrade-in-Arms," "The
Shore of Rescue," "The Valley of Death" and
documentary films "Legendary Mt. Kumgang" and
"Mounted Nation."
The recently released feature film "Woman Knight
of Koryo" and documentary film "Way for
Existence" were made to order.
It has exchanged hundreds of films with over 100
countries.
Besides, the company has participated in
international film festivals held in various
countries with some 80 films.
Mineral Water Resources Widely Developed
Pyongyang, August 20 (KCNA) -- Mineral water
resources have been developed extensively to
promote people's health in the Democratic
People's Republic of Korea. The government took
measures to organize special spa prospecting
teams and carry on the survey of mineral water
resources in a systematic and deep-going way.
Activities are being conducted to develop and
use efficacious natural resources.
Bullet Train Faces Financial Hardship
Passengers Surpass 10 Million Since KTX Began Operation in April
By Kim Rahn
Staff Reporter
The nation's bullet train, the Korea Train Express (KTX), on Friday saw its 10
millionth passenger after 142 days of operations since its launch in April.
``The number of people who have used the KTX over the past 142 days is equal to
one-fifth of the population of the nation. It is 29 days faster than Japan's
bullet train reached the figure in 1965,'' a Korail official said
US Blocking Kaesong Development Project
By Park Chung-a
Staff Reporter
The U.S. government recently demanded the Korean government regulate the speed
of development of the industrial complex in the North Korean border town of
Kaesong, expressing worries that North Korea might use ``strategic facilities''
for military purposes.
This voice of concern is casting clouds over the business venture projects in
Kaesong, between the two Koreas.
Currently, the U.S categorizes Pentium-III or more advanced computers and
precision instruments as "strategic facilities". If there is no change in the
U.S position, there is a high possibility that progress in the development of
the Kaesong industrial complex will reach a dead end.
The Wassenaar Arrangement established in 1996, which replaced the cold-war
era's COCOM (Coordinating Committee for Export Control to Communist Area),
states restriction on export of conventional weapons, dual-use goods and
related technologies to countries supporting terrorism or causing regional
disputes.
Experts assume that although the U.S outwardly says it is worried that
permitting shipment of advanced machines including Pentium-III computers to
North Korea might be used for communist purpose, the real reason for U.S.
concerns is that Kaesong industrial projects will bring communist North Korea
large sums of foreign capital.
[Sanctions] [US dominance]
China's Import of Chinese Medicinal Herbs From North Korea Becomes Easier
[Dalian, KOTRA]
According to the July, 28th issue of the Heilongjiang newspaper, the Changbai trade district is the largest importer of Chinese medicinal herbs from North Korea among the trade districts with North Korea within China, with its annual import volume reaching 20 million tons of the medicinal herbs.
Garment, Labor-Intensive Firms Move to Kaesong Complex First
[Yonhap,Aug.15th]
The government said Sunday that garment and labor-intensive companies will be the first to set up operations at Kaesong Industrial Complex in North Korea. The move is part of an effort to get South Korean companies to establish operations at the pilot industrial park so that they can start manufacturing goods. The complex, built jointly by the Korea Land Corp. and Hyundai Asan, is the centerpiece of inter-Korean economic operations and detente.
"By getting garments, textiles and stuffed toy plants to move first, we can use the interim to review what other manufacturing companies can follow without breaking any rules limiting transactions on 'strategic commodities' to certain countries," a government official said.
South Korea is a signatory to the Wassenaar Agreement that restricts the flow of merchandise and commodities that have "strategic" applications, such as being used to build weapons. The labor-intensive businesses should finish making the move by October, while the Korea International Trade Association is in the process of screening machine-tool makers and electronics companies that want to move their operations to the North to make certain that such items do not fall into the restricted category.
The screening process is expected to be completed by the end of the month, with the results being sent to concerned parties. Seoul plans to forward the date and review to the United States for cooperation in allowing the plants to move North.
Washington has expressed reservations about heavy manufacturing plants being set up in North Korea, saying they could be used for non-commercial purposes, while South Korea has said all products manufactured in the North will be brought to the South and will not pose any concern.
The opening phase of the pilot industrial plant is important because both the Korea Land Corp. and Hyundai have said they will decide on the pace of further development based the how well Kaesong functions initially.
[Sanctions] [US dominance]
Gaeseong digs yield riches
The Gaeseong industrial complex, designed to
stimulate manufacturing in North Korea through
investment from the South, is taking on the
appearance of an archeological treasure trove.
According to Korea Land Corp., in the first
joint excavation between North and South Korean
scholastic institutions in June, a large number
of historical artifacts dating back as far as
the Stone Age, have been extracted at the site.
The discoveries, however, are not hampering the
development of thelarge industrial complex,
located 70 kilometers (43 miles) from Seoul. The
artifacts will be displayed at Gaeseong Museum,
but a historic housing site will not be
preserved as it was heavily damaged in the
Korean War and previous conflicts, said an
official at the Land Corp.
[Kaesong]
Old idea, new life: a tunnel to Japan
The idea of a railroad tunnel under the East Sea
to link Korea to Japan has been revived by a
Japanese private-sector construction group and
project enthusiasts in Korea.
The concept of such a massive project has been
around since the 1980s. Presidents Roh Tae-woo
and Kim Dae-jung both raised the idea in
meetings with their Japanese counterparts. In
the 1980s, Japanese scientists began studies
below the floor of the East Sea (Sea of Japan).
Some preliminary studies showed that the best
routes would run from either Busan or Geoje
island in Korea to Japan's southern island of
Kyushu. The shortest route would be about 200
kilometers in length ? about four times the
length of the Channel Tunnel that links France
and Great Britain.
Yesterday, the Japan-Korea Tunnel Research
Association, a non-profit organization numbering
about 500 academics and construction engineers,
said it would begin a joint research project
with Korean specialists to build such a tunnel.
A symposium will be held in Seoul on Tuesday,
the group said, to discuss the concept. "We plan
to share information on a private level and
conduct research for two or three years," said
Hikoji Takahashi, the association's head.
The concept has some expert support here as
well. Shin Jang-cheol, a professor at Soongsil
University, said that he had proposed last month
that Seoul raise the issue later this month at
the free trade talks now being conducted by the
two governments. "The costs that Korea would
have to bear are estimated to be about 45
trillion won, which is only one-seventh of what
it would cost to move the administrative
capital," Mr. Shin said.
If the tunnel were built, it would probably run
either from Busan or Geoje Island in Korea to
Kyushu, a distance of about 200 kilometers (120
miles). That would be four times longer than the
Channel Tunnel that links Great Britain and
France. Some advocates here call such a tunnel
the perfect final link to a transcontinental
Europe-Asia railroad. Lee Chang-hoon, the
honorary president of Halla University, calls
the tunnel essential to realize Korea's dream of
becoming Northeast Asia's economic hub; Hur Jae-
wan of Chung-Ang University predicted that the
economic benefits would be at least double the
construction cost.
But there are dissenting voices as well. Some
critics cite what they say would be huge
construction and maintenance costs, and others
worry that the project would put Korea at a
further economic disadvantage with its neighbor.
"Busan and Gwangyang harbors will die and all
trade will move to Japan," said Ahn Byung-min, a
scholar at the Transportation Development
Institute. "A lot of people think that it would
be a loss for us."
The same arguments, pro and con, have been made
since the idea was first broached. At one point,
the Construction Ministry asked the Korea
Transport Institute and the Korea Railroad
Research Institute to draw up a report on the
advantages and disadvantages of the scheme. The
two institutes agreed that the project was
"unreasonable"; they cited, among other reasons,
the location of the proposed tunnel in an active
earthquake region. They said the cost-benefit
balance of a tunnel was inferior to the that of
a combination of air and maritime traffic.
by Choi Ji-young, Wohn Dong-hee
7 Banks Vie to Open Kaesong Branches
Seven banks have filed applications with the government to open branches at an
industrial complex in Kaesong, a city just north of the Demilitarized Zone.
The applicants include the state-run Korea Development Bank, the Industrial
Bank of Korea and five commercial lenders, including No.1 lender Kookmin Bank
and Woori Bank, the country's second-largest bank.
A formal license will be issued in September, according to the Financial
Supervisory Service.
About 1,000 Korean garment and other labor-intensive companies are scheduled to
relocate their factories to Kaesong from the South.
Kefir Shops in Pyongyang
Pyongyang, August 9 (KCNA) -- More than ten goat
milk kefir shops and their branches have made
their appearance in Pyongyang recently. They
serve kefir and other milk goods produced by the
Goat Farm in Kangdong County, Pyongyang, roasted
goat meat and national dishes.
They have dining halls and rooms and modern meat
roasters.
Ryu Myong Hak, manager of the Kefir Shop in
Puksong-dong, Phyongchon District, told KCNA
that kefir and roasted goat meat are served to
citizens on a regular basis and various kinds of
milk goods are supplied to different units.
Stockbreeding farms equipped with milk
processing facilities have been built in
different parts of the country including
Hamhung, Haeju, Sariwon and Kusong.
Quality Taekwon-Do Goods Produced in DPRK
Pyongyang, August 6 (KCNA) -- Various kinds of
quality Taekwon-Do goods and souvenirs have been
produced in the Democratic People's Republic of
Korea for the First International Martial Arts
Games to be held in September. The Phyonghae
Technical Joint Venture Corporation is mass-
producing Taekwon-Do and other sports uniforms
with the demand for them ever growing among
local and foreign people.
Among the products are different-size suits for
Taekwon-Do trainers, players and trainees, hand
and foot gloves, and knee and chest protectors.
Trainers' title markers, grade belts and
souvenirs have also been made.
The company, which started operation in last
February, has a competent technical staff and
modern equipment.
Its products are popular among Taekwon-Do
players and fans in Asian, European and other
countries.
Doing Business
with North Korea
Michael Hay
Korea Quarterly Vol 4 No 1 2004
To many, the notion of business and North Korea
is an oxymoron. To the amusement of some, my
chosen profession is providing full-time consulting
services exclusively to foreign corporations
seeking to do business with North Korea. Challenging
times, true, but there is in fact much work to be done-
and being done-and numerous opportunities for foreign
investors.
Let's be clear. We're not talking China, where jumbo jets
land on the tarmac by the minute, disgorging investors.
But speaking of amusement, much is to be found in the
repeated affirmation in those glossy, expensive reports and
"ratings analyses" that, basically, there "ain't no business
being done on the ground there." And therein lies the key.
There is no substitute for going in on the ground, because
only by doing that does one see what lies behind the headlines
and what North Korea has to offer international businesses-
both in items and attitudes.
Business? North Korea? There's far less than North
Korea would like to undertake and is willing to and capable
of undertaking. At the same time, there's far more in
North Korea than most outsiders realize. Not 10 years
hence. Not "down the road." Right now.
Gaeseong prompts tech transfer worry
As South Korea's project to build and operate an
industrial complex in the communist North is
realized, Seoul officials have opened talks with
the United States about the potential transfer
of sensitive technology to North Korea, Seoul
officials said yesterday.
South Korea is scheduled to open a pilot program
at the Gaeseong Industrial Complex next month,
where domestic firms will operate factories with
North Korean laborers. Since some of the
equipment to be sent to the North may include
technology barred by a U.S.-led international
agreement, Seoul presented its views on the
transfer to the U.S. Embassy here, a Unification
Ministry official said. A team from the
ministries of unification, foreign affairs and
commerce, industry and energy visited the
embassy on July 12.
[Sanctions][Kaesong] [US dominance]
ROK, US Discuss Kaesong Project
By Yoo Dong-ho
Staff Reporter
South Korea and the United States recently
opened discussions on Seoul's plans to send key
facilities and materials for an industrial
complex being built in the North Korean border
town of Kaesong, according to sources on Friday.
As a signatory to the U.S.-led international
regime, South Korea is banned from sending
strategic facilities and items to the communist
country.
The Wassenaar Arrangement, signed by 33 member
countries, including South Korea, was intended
to restrict the flow of commercial weapons,
electronics and telecommunications products to
countries supporting terrorism or causing
regional disputes
[Sanctions] [US dominance]
China Offers Gratis Glass Plant to DPRK
Ground-breaking Ceremony Held in a Suburb of Pyongyang
China's offer of a glass plant was made when China's No.2 official Wu Bangguo,
member of the Standing Committee of the Political Bureau of the Central
Committee of the Communist Party of China, paid an official visit to the DPRK
at the end of October 2003.
The construction of the glass plant is the first large-scale economic project
between the DPRK and China since China's new leadership led by Hu Jintao took
office.
According to an official concerned, the total floor space of the plant will be
293,000 square meters, and the daily output of the plant will be 300 tons of
glass.[Aid]
Roh Urges Efforts to Open Pilot Complex in N.K.
[Yonhap,Jul.31th]
President Roh Moo-hyun Saturday urged the government to make efforts to open a pilot industrial complex for South Korean firms in North Korea's border city of Kaesong by the end of the year as scheduled.
"We need to take every measure so the model complex begins operating by the year's end as scheduled as it is an important project not only for inter-Korean reconciliation and peaceful co-prosperity but also for opening an era of a peaceful and prosperous Northeast Asia," Roh told a meeting of the National Security Council at Cheong Wa Dae.
The government will continue to maintain the policy of inter-Korean reconciliation to pursue the linkage of inter-Korean railways and roads and civilian exchanges, Roh said. The two Koreas Wednesday celebrated the completion of a pilot industrial complex in Kaesong, a city only a few kilometers north of the heavily fortified inter-Korean border, in a concrete step toward much-touted economic cooperation.
The complex, which will later be linked with a cross-border railway being built by the two Koreas, is to be used by hundreds of South Korean garment manufacturers and other labor-intensive companies that want to relocate facilities there to use cheap but skilled North Korean labor.
The industrial park project is one of the most prominent symbols of inter-Korean reconciliation, which was set in motion by the first-ever summit of the leaders of the two countries in 2000. It is expected to shift into full gear starting from November, when the South Korean companies are to switch their production to the complex, which will have 5,000 North Korean workers.
The state-run Korea Land Corp. plans to complete construction of the main 2.31-million-square-meter complex by the end of 2006, and will start to offer areas to potential investors in the second half of this year.
20th Anniv. of Movement for Production of August
3 Consumer Goods Observed
Pyongyang, August 3 (KCNA) -- A national meeting
was held in Pyongyang Monday to mark the 20th
anniversary of the movement for the production
of August 3 consumer goods, a Korean-style mass
drive of consumer goods production initiated by
leader Kim Jong Il. Kim Jong Il visited a
Pyongyang exhibition of light industrial goods
on August 3, Juche 73 (1984). He saw consumer
goods of wide variety which national light
industrial factories and districts and counties
of the city had produced by tapping and using
inner reserves and potentials and highly praised
them. And he set forth important tasks to be
fulfilled to make substantial contributions to
the improvement of the people's living through
an all-people movement for the production of
consumer goods.
Exhibition of August 3 Consumer Goods
Pyongyang, August 3 (KCNA) -- An exhibition of
August 3 consumer goods is now open at the
People's Palace of Culture. Exhibited there are
consumer goods produced by work teams engaged in
the production of August 3 consumer goods at
factories and enterprises across the country,
housewives work teams of ris, townships and
workers settlements (dongs), sideline work teams
in the fields of agriculture and fisheries,
production teams of city and county (district)
direct sales shops using idle materials and home
workers.
Over 50,000 pieces of garments, ironware,
electrical appliances, grass goods, wooden
articles, local farm products and minor goods of
7,000 kinds or more are displayed, divided into
provincial sections.
Record soju shipments during first half
Soju shipments rose to a record high during the first six months of this year as the low-priced traditional Korean spirit gained popularity amid the depressed economy, the National Statistical Office said yesterday.
Sales of beer and whiskey declined from a year earlier, prompting the government to postpone a tax increase on alcoholic beverages scheduled to begin next year.
Soju shipments in the first half rose 7.2 percent to 590,000 kiloliters, while beer sales shrank 10,000 kiloliters to 833,000 kiloliters and whiskey sales nosedived 16.9 percent to 4,967 kiloliters.
Rare Earth Resources Developed in DPRK
Pyongyang, July 29 (KCNA) -- Great efforts have
been directed to the development and use of rare
earth resources in the Democratic People's
Republic of Korea. Recently, the Korea Rare
Earth Center made public results of research
into the geological characteristics of rare
earth resources, scientific and technological
problems raising in their development, rational
concentration methods of rare earth ores, their
production in an industrial way and their use in
stockbreeding and plant cultivation.
Quality rare earth resources have been developed
in the country on the basis of modern
prospecting and concentrating technologies.
Chongjin-Busan Irregular Containership Route Opened
The Heilongjiang Newspaper reported on July 20, 2004 that the non-regular container liner service between Chongjin of North Korea and Busan of South Korea was inaugurated.
railroad transportation services between Chongjin and Yanbian. The firm prospects that the trade exchange between Yannbian, China and Japan will be done more conveniently in the future.
Chongjin, the capital of the Hamgyong Pukdo Province, is a large city with a population of 660,000 and a population of 2 million within its neighboring regions. The newspaper added that as Chongjin is near the Musan mine field, it is rich in mining products. Furthermore, as large companies including Kimchaek Ironworks and Chongjin Shipyard are gathered into the region, it can become the center of the road and railroad traffic of the northern section of North Korea. Chongjin is linked to Yanbian via Namyang and Tumen by railroad.
The distance between Chongjin and Busan is 430 miles, and it takes two days for the one-way voyage. According to the company spokesman of Namgang Shipping, Chongjin is comparatively easy for ships to come alongside its berth, and the main items taken via the route of Chongjin-Busan include agricultural and fishery products and zinc ingots.
S. Korea to Import Duck, Chicken from N. Korea
[Yonhap,Jul.28th]
The South Korean government said Wednesday that it is moving to revise existing import regulations to allow chicken and duck meat to be brought in from North Korea. The Ministry of Agriculture and Forestry said it is putting the final touches to revisions to sanitation rules to permit the imports. The exact date for starting to allow the imports has not been set since various political factors need to be considered, but there is a possibility it could start next year.
"Once changes are made, formal imports of North Korean poultry will take place, with consumers being able to eat duck and chicken from the North," a ministry official said. He added that Pyongyang had brought up the matter with the Unification Ministry in September 2001.
In addition, the official said that some local importers have already expressed an interest in North Korean poultry because it is not subject to duties. This is the first time South Korea is making changes to import regulations to allow trade of North Korean livestock or poultry.
The government, however, said it needs to work out ways to make certain that Chinese products are not brought into the country "disguised" as North Korean chicken or duck.
The National Veterinary Research and Quarantine Service said that it inspected a number of duck and chicken farms in and around Pyongyang in October and found the facilities modern. The service said the farms to which its team was allowed access were isolated, with the butchering of the birds taking place under strict government control and sanitary conditions.
Chinese-Dutch Bizman Likely to Be Freed Around September
[Yonhap,Jul.22th]
China will likely free a jailed governor of a North Korean special administrative zone as early as September in response to North Korean leader Kim Jong-il's request for his release, the businessman's aides said Thursday.
"North Korean leader Kim Jong-il asked Chinese President Hu Jintao to set free Yang Bin when he visited China in April," Ma Ning, a close aide to Yang, told Yonhap News Agency, quoting Pyongyang officials.
He said Yang is currently detained in Shenyang, a city northeast of Beijing, and his release will likely come shortly before or after a scheduled fourth round of six-nation talks on North Korea's nuclear ambitions in the Chinese capital in September.
The Chinese-Dutch tycoon was sentenced to 18 years in jail and fined 8.3 million yuan (US$7,113) in July last year for illegal land use, bribery, fraud and other economic crimes. Nicknamed the "orchid king," the flower exporter was listed as the second richest man in China by Forbes magazine in 2001.
He was arrested just days after North Korea named him head of a special administrative zone in the northwestern border city of Sinuiju. Pyongyang announced the project to transform the city into a special enclave with independent legislative, executive and judicial powers in September 2002 but put it on hold after Yang's arrest.
Ma said North Korea has yet to abandon the ambitious project despite the unexpected twist. "If China releases Yang around September, North Korea will make a grand decision to let China save face," he said, without specifying the nature of the decision. A biographer of Yang, who declined to be identified, quoted some officials as saying that China will most likely release Yang under a special amnesty, on bail or for deportation.
The biographer, who is here to promote his new book that was recently published in Korean, refused to elaborate on the identity of the officials, citing safety reasons. The aide claimed the North's chief delegate to the six-way talks on Pyongyang's nuclear ambitions, Kim Gye-gwan, also called for Yang's release on the sidelines of the second round of the negotiations last February as part of North Korean leader Kim's efforts to free Yang.
The Sinuiju special region was Kim Jong-il's own idea, conceived after he visited high-tech villages in Shanghai in January 2001, the biographer claimed. The biographer has been deeply involved in the Sinuiju project as Yang's close aide. He met Kim twice in Pyongyang as Yang's chief press adviser.
Large-scale Blasting Carried Out with Success
Pyongyang, July 23 (KCNA) -- A large-scale
blasting was successfully carried out at the
site of the Taean Friendship Glass Factory on
July 22 to remove 300,000 cubic meters of earth.
It is now under construction on the bank of the
River Taedong in Taean County, South Phyongan
Province, as a monumental edifice to be recorded
in the history of the DPRK-China friendship.
Kim Jong Il Sends Thanks to Students and Teacher
of Pyongyang School of For. Languages
Pyongyang, July 22 (KCNA) -- Leader Kim Jong Il
sent thanks to students and a teacher of the
Pyongyang School of Foreign Languages of
Pyongyang University of Foreign Studies who
gained the highest marks at the 11th
International Student Russian Olympics. Students
Hong Won Jik, Pae Kyong Il, Han Un Byol, Kim Un
Yong, Ho Won Il, Pak Yu Song and Kim Kwi Hyang
and teacher Kim Chu Yong who is department chief
gave a good account of themselves at the
Olympics recently held in Moscow with 36
countries attending.
The students were awarded the best diploma, the
first class diploma and medals in the contests
of Russian-speaking, introduction of their
countries and culture and composition.
Portable Plastic Turbine Made in DPRK
Pyongyang, July 22 (KCNA) -- The Hydro-power
Development Center of the Democratic People's
Republic of Korea has manufactured portable
plastic water turbines. The plastic turbine
weighs 3.5 kilograms.
It has 20 impellers, each being 18 centimeters
in diameter and 6 centimeters wide.
It can be installed in a small stream with a
flow of 9-19 liters per second and a head of 3-
14 meters to produce 0.185 to 1.82 kilowatts of
electricity. The electric generator and turbine
are linked together by a belt.
It is also suitable for magneto, AC and DC
generators and motor generator.
The portable plastic turbine whose production
cost is low has already been introduced in many
units.
Land Realignment in South Phyongan Province and
Pyongyang Completed
Pyongyang, July 20 (KCNA) -- A work for turning
the land in South Phyongan Province and
Pyongyang into vast fields of standardized
shapes has been successfully completed. At least
94,400 hectares of land in this province and
city has been realigned in a little over two
years.
As a result, more than 648,700 small patches of
paddies and fields have been rezoned into fields
of standardized shapes, covering 800 or 1,000
phyong and 1,500 phyong each, and roads between
fields extending more than 330km have appeared.
Meanwhile, a total length of ridges between
paddies reaching more than 40,000km has been
reduced to at least 28,200km.Well-regulated
water ways extending over 8,600 km now run along
fields and at least 6,400 swamps have turned
into a fertile land. The realignment projects
have brought 1,530 hectares of new land under
the plough.
DPRK-made Drinks to Be Sold in U.S.
Pyongyang, July 20 (KCNA) -- Pyongyang Liquor is
soon to be sold in the U.S.
Pak Il U, 55, a Korean resident in the U.S who
is manager of the Dong Woo U.S.A. INC., had an
interview with KCNA at Koryo Hotel when he was
visiting Pyongyang.
The publication of the June 15 North-South Joint
Declaration gave him a great delight, he said. A
way has been paved for the Korean nation to
reunify the country by itself.
I have thought that when all the Koreans in the
north, south and overseas are united with a
strong sense of patriotism and try to let the
world know well about Korea, the door of
national reunification will be opened, he said.
After much deliberation over the way for
disabusing American society of its mistaken
thought about the DPRK and giving the Korean-
Americans a correct understanding of the
fatherland, I made up my mind to sell Pyongyang
Liquor in the United States, he said, and went
on:
"I have spent much time and efforts for its
realization. Pyongyang is the capital of the
Democratic People's Republic of Korea. When
people drink Pyongyang Liquor, a traditional
liquor of Korea, they will think of Korea and
chat about the history and traditions of the
nation. That's why I made such a decision."
Saying that his initiative was fully supported
by the motherland, he added:
"I have already taken the business license and
have it registered as the Korea Pyongyang
Trading U.S.A INC. I feel pride and have already
received congratulatory telephone messages from
Koreans in different regions of the world".
Noting that its sale is optimistic as the
selling network has already been arranged, he
explained his plan to sell various kinds of DPRK-
made drinks including blueberry wine in the
United States, not limiting himself to the sale
of Pyongyang Liquor.
He called upon all the Koreans abroad to make a
tangible contribution to the reunification of
the nation, those with money donating money,
those with strength giving strength and those
with knowledge dedicating knowledge, as said by
President Kim Il Sung.
South Must Help NK Remain Economically Independent
Interview with Im Jong-seok, spokesperson for Uri Party
How much do we really know about our political
representatives? They appear everyday in the
media and are the subject of a range of
discussions on different Web sites, but we very
rarely have the chance to hear more about their
personal histories and the full range of
opinions that they hold.
Through interviews with the spokespersons of
both of the current major parties, I was able to
gain greater insight into some of their views on
different issues and how they balance their
families and careers.
Trade Exchange Between North Korea and Thailand on the Rise
According to the Commerce Ministry of Thailand, the trade exchange volume between North Korea and Thailand was US$126 million worth during January to May this year, 2004, a sharp increase of 32.9% compared with the same period of last year. North Korea's primary import items included crude oil, computers and rice ($91.4 million worth), and they mainly shipped to Thailand refined oil and cathode-ray tubes ($34,5 million worth).
Thailand is the NK's fifth largest foreign trade partner following China, South Korea, Japan and the EU
North Korea to Provide a Chartered Aircraft of the Koryo Airlines for Overseas Korean Traders
Overseas Korean traders are likely to visit North Korea using a chartered aircraft of the Koryo Airlines in October of this year, 2004.
According to a source within the Overseas Korea Traders Association (OKTA) in Southern California, there has been a verbal agreement that the traders will fly from Incheon Airport to Pyongyang Sunan Airport, then, they will come back from Sunan and arrive at the at the Jeju International Airport.
The chartered aircraft was suggested by North Korea, reflecting her great expectation from consulting with the overseas Korean traders about trading the North Korean products
N. Korean Distilled Liquor to be Sold in United States
[Yonhap,Jul.20th]
A North Korean distilled liquor will be sold in the United States soon, the state-controlled (North) Korean Central News Agency (KCNA) said Tuesday. In a dispatch from Pyongyang, the KCNA said the distribution network for the traditional liquor "soju" has already been set up in the United States and the prospect of sales is bright, adding that other North Korean liquors could be also available in the future.
Inter-Korean Trade Grows 21 Percent in First Half
[Yonhap,Jul.15th]
Trade between South and North Korea increased by 21 percent to US$325 million in the first six months of this year compared with the same period of last year, the Unification Ministry said Thursday. South Korea imported $116 million worth of goods from North Korea, mostly agro-fisheries and textile products, while shipping $209 million worth of goods, mostly chemical and textile products, to the North.
The ministry attributed the surge to a steady increase in bilateral commercial transactions and processing-on-commission trade as well as Seoul's provision of humanitarian aid and construction materials to build cross-border transportation links. Commercial transactions, including processing-on-commission trade, totaled $149 million in the first six months, up 5.1 percent from a year earlier.
Non-trade transactions also surged by 38.7 percent to $176 million in the same period. Inter-Korean maritime trade volume was also up 31.6 percent to 400,000 tons and the number of voyages by ships on inter-Korean trade routes reached 937, up 14.7 percent from the corresponding period of last year, said the ministry. During the January-June period, South Korea posted a trade surplus of $93 million with the North. But if non-trade transactions are excluded, North Korea recorded a trade surplus of $83 million with the South.
Currently, 333 southern firms, including 84 companies involved in processing-on-commission business, are engaged in inter-Korean commerce, trading 491 different types of items. South Korea is the second-largest trading partner of North Korea following China. Last year, bilateral trade totaled US$724 million, up 12.9 percent from 2002. Ties have improved significantly since the countries' leaders met for the first time in their landmark summit in June 2000, but difficulties persist because of the North's nuclear weapons ambitions and other issues.
eBay Auction Web Site Sells 270 North Korean
Items
North Korea's commemorative stamp sets are sold
at $1.75, 20 won coins on which the image of the
late president Kim Il-sung is carved, at $42,
and commemorative postcards of the North Korea-
Italy match of 1966 Italy World Cup Football
Games and commemorative stamps of the marriage
of princess Diana in 1981 are also being sold on
the auction site.
KCF Co. to Hold a Trade Consultation Meeting in
North Korea at the End of July
[KOTRA, North Korea Team]
The KCF(Beijing Korea-China Friendship Promotion
Cultural Exchange) Co., Ltd. recently revealed
that they would hold a consultation meeting for
trading with North Korea with the goal of
attracting Chinese enterprises and individuals.
At this meeting that will run from July 26-30 of
this year, 2004, there will be 50 participating
companies who are engaged in 12 sectors of
industry.
N.K. Expands Foreign Language Education: Pro-
Pyongyang Paper
[Yonhap,Jul.13th]
North Korea has strengthened foreign language
education for its university students as demand
is on the rise amid signs of improving relations
with foreign countries, a North Korea-controlled
media outlet in Japan said Tuesday.
The Choson Sinbo, the official paper of a pro-
Pyongyang body in Japan, said the number of
foreign languages offered by Pyongyang
University of Foreign Studies has increased to
21 from three in early 1950s when Russian,
Chinese and English were taught.
"Traditionally, foreign language specialists
have been regarded as important in foreign
affairs, but now diverse fields of society
require talented people who mastered foreign
languages," Kim Sung-kil, a university official
said. "We should know foreign languages to learn
advanced science and technology, and foreign
language capability is a must for those who work
in economic fields as well."
"Asia-Europe Railroad Lines to Be Linked by Implementation of June 15 Joint
Declaration"
"Iron-Silk Road Symposium" Held in Seoul
An "iron-Silk Road Symposium of ASEM (Asia-Europe Meeting)" to discuss the
problem of linking railroads between Asia and Europe was held in Seoul from
June 17 to 18.
A delegation of the DPRK's Railroad Ministry participated in the symposium.
The North and the South had agreed to test railway lines along the Eastern and
Western coasts of Korea within October at the meeting of the North-South
Promotion Committee for Economic Cooperation which was held in early June.
Rajin University of Marine Transport
Pyongyang, July 13 (KCNA) -- Rajin University of
Marine Transport in Rason City, the Democratic
People's Republic of Korea, was founded in July
Juche 57 (1968). Since its foundation, the
university has trained a large number of
technicians, specialists and management
officials in the field of marine transport and
solved many scientific and technological issues,
thus making a great contribution to the
development of the nation's marine
transportation. Its graduates are now playing a
big role in the marine transport as captains and
technicians of large vessels.
ASEM Symposium on an Iron Silk Road
The ASEM Symposium on an Iron Silk Road will be held under the theme of "Overcoming the Land Divide between Asia and Europe" on 17-18 June, 2004 at the Shilla Hotel in Seoul.
The symposium, a joint initiative by the Republic of Korea, the Republic of Finland, the Socialist Republic of Vietnam, the People's Republic of China, the Federation of Malaysia, the Republic of France and ASEF (the Asia-Europe Foundation) is well in keeping with the aims of ASEM.
Newsweek, Korea, 4 July 4002
The Finnish director Markku Heiskanen of the Finland Foreign Affairs Ministry looked very encouraged during the Symposium. Finland is the country on the most right-side among the EU member countries. Mr. Heiskanen took part in the ASEM 'Iron Silk road' Symposium held in Asia for two days since June 17th . He emphasized repeatedly that Finland is very interested in this project. The Korean cargo exported to Finland through the TSR (Trans Siberian Railroad) increased five- fold during the last two years. Heiskanen said to Newsweek that 'Finland wishes to become the EU logistics center. When the inter-Korean railway link makes TSR more active, logistics will become the second most important industry in Finland.'
North Korea's 2003 Foreign Trade Recorded at Record
High Within the Past 10 Years
-Export and import posted a growth of 5.5% and 5.9%, respectively -
In 2003, North Korea's foreign trade approached US$2.391 billion mark, up 5.8% from the year before. Exports for the same year totaled $777 million, thus posting a 5.5% growth from a year earlier and representing five straight years of growth since 1999. The import volume of the year topped $1.614 billion, up 5.9% over the preceding year. The trade deficit of the year amounted to $837 million, a slight fall from the $790 million recorded the year before. These figures clearly reflect the characteristics of the NK's foreign trade where imports sharply outweigh their exports.
Major reasons for the export growth include: ?the increase in exports of nonmetal goods and marine products to China ?the surge in the exporting of their textile goods to major trade partners.
Signs That North Korea Is Coming to Market
By JAMES BROOKE
Published: June 3, 2004
EOUL, South Korea, June 1 - Profit is good,
North Korea's leader Kim Jong Il, has told
factory workers in a rare economics lecture, the
North's news agency reported on Wednesday.
Pyongyang Trade Fair Proves Successful
Pyongyang, June 2 (KCNA) -- Many of the exhibits
at the recent 7th Pyongyang International Trade
Fair attracted attention of local and foreign
visitors. Typical of them were ironware, high-
speed steel, plastic asbestos slate, hydrogen-
nickel rechargeable battery, various sizes of
aluminum-plastic pipes, numerical control
machine tools, super electronic tubes, medicine
made of natural plants and other drugs exhibited
by trade companies of the Democratic People's
Republic of Korea.
Kyenam Stock Farm Visited by Foreign Diplomats
Pyongyang, June 1 (KCNA) -- The economic and commercial councilors' corps here visited the Kyenam Stock Farm on May 31 on the occasion of the 40th anniversary of leader Kim Jong Il's start of work at the Central Committee of the Workers' Party of Korea. The guests were greeted by Ri Man Song, chairman of the Rural Economy Committee of South Hwanghae Province, and officials of the stock farm on the spot.
They were briefed on the fact that under the wise guidance of Kim Jong Il the stock farm was built as a large modern stock-breeding centre greatly conducive to improving the people's diet in a short span of time, while enjoying a bird's-eye view of the spectacular scenery of the farm from its gazebo.
Then they looked round barns built in a peculiar style for pigs, goats and other domestic animals and a milk processing factory equipped with the latest equipment
Roofing Materials Factory Commissioned
Pyongyang, June 1 (KCNA) -- The roofing materials factory of the Yongcho Building Materials Joint Venture Company went into operation. The factory built according to the joint venture contract between the Yongcho Building Materials Joint Venture Company of the DPRK and the Changchun Yongcho Science and Trade Company Ltd. of China produces good-quality roofing materials of various colors.
All the production processes of the factory including mixing and adhesion are modernized.
Profit Is Good, N.Korea's Kim Tells Factory Workers
By REUTERS
Published: June 2, 2004
Filed at 2:25 a.m. ET
SEOUL (Reuters) - Profit is good and communist North Korea's workers need to be taught more about its importance, the impoverished nation's leader, Kim Jong-il, told factory hands.
The official KCNA news agency said on Wednesday Kim had visited a machine tool plant with Prime Minister Pak Pong-ju and military officials. It did not say when the visit to the Kusong plant took place.
``It is very gratifying that this plant has abided by the principle of profitability,'' KCNA quoted Kim as telling workers.
It said he also urged officials to ensure economic performance met ``the needs of the socialist method of industrial management'' while ``intensifying the ideological education among producers to thoroughly ensure profitability in production.''
N. Korean Kimchi to Arrive in the US
[Chicago, KOTRA]
From now on U.S. consumers can also taste North Korean Kimchi. Daein Corporation, which is the official provider of North Korean ˇ°Gasijip Kimchiˇ± in South Korea, announced that the company will ship their North Korean Kimchi to the American continent via the International Corn Foundation from the middle of May, 2004. ˇ°Gasigjipˇ± means ˇ°Cheogajip (WifeˇŻs house)ˇ± in South Korean.
The Gasigip Kimchi is made in North Korea with North Korean cabbage and South Korean garlic and spices. The Kimchi will take its official export route to the United States after touring around four times with Kimchi sampling parties in that area.
The International Corn Foundation revealed that they will utilize the Kimchi sales proceeds for the famine-stricken North Koreans or other third world countries.
A Total of 39 Companies Joined the Pyongyang International Commodity Fair
- 18 Chinese enterprises participated -
The most popular item at this event was the "Ppeokkuksae (Cuckoo)" from the Pyonghwa Motor Co. Ltd., which is a joint venture by the CWP (Coalition for World Peace) and the "North Korean Ryonbong General Company." Following the first North Korean manufactured passenger car, the "Hwiparam (Whistle)," the Peokkuksae was a newly launched 4-wheel-drive car
Chinese Companies Eyeing N. Korean Market: Korean-Chinese Daily
[Yonhap,May.31th]
Chinese firms based in a Chinese border town with North Korea are now trying to explore a new market in the North, a Korean language newspaper in China reported Monday. The Heilongjiang Daily, a Korean language daily for Korean-Chinese, reported that a number of Chinese companies in Dandong, a city close to a border with the North, now have long-term plans to tackle the North Korean market.
.
"We are not making any profits (in North Korea) right now because the tariffs that North Korea imposes are very high," an official at the Chinese beer company was quoted by the paper as saying. "But we have plans to make profits by securing a strong brand first and then open up their market later."
North Korean people will only be able to benefit from high quality and reliable Chinese goods when (we) open up a new market in North Korea with high quality brand products," the paper quoted another official from a Chinese export company as saying. The newspaper also reported that US$200 Chinese-made refrigerators are becoming a hit product in North Korea
North Korea's 2003 Foreign Trade Recorded at Record
High Within the Past 10 Years
-Export and import posted a growth of 5.5% and 5.9%, respectively -
[KOTRA/North Korea Team]
1. General Situation
In 2003, North Korea's foreign trade approached US$2.391 billion mark, up 5.8% from the year before. Exports for the same year totaled $777 million, thus posting a 5.5% growth from a year earlier and representing five straight years of growth since 1999. The import volume of the year topped $1.614 billion, up 5.9% over the preceding year. The trade deficit of the year amounted to $837 million, a slight fall from the $790 million recorded the year before. These figures clearly reflect the characteristics of the NK's foreign trade where imports sharply outweigh their exports.
S-N Economic Dialogue Starts in Pyongyang
By Yoo Dong-ho
Staff Reporter
South and North Korea will hold a new round of
economic talks in Pyongyang starting Wednesday
to discuss details of ongoing and planned cross-
border economic projects.
Meeting of Officials in Trade Field Held
Pyongyang, May 29 (KCNA) -- A meeting of
officials in the trade field was held at the
People's Palace of Culture Friday. At the
meeting Jong Ha Chol, secretary of the Central
Committee of the Workers' Party of Korea,
conveyed a congratulatory message of the WPK
Central Committee to the workers, technicians
and officials in the sector of trade.
Kim Jong Il, holding high the banner of Songun
during the "arduous march" and the forced march
in particular, took steps to open new foreign
markets and improve the trade methods through
bold trading activities despite the vicious
economic blockade moves of the imperialists,
they stressed.
They underscored the need to conduct the trading
activities to suit the change of foreign markets
and the trend of trade development, make an
effective use of the already built processing
trade bases, harbor trade bases and service
bases and make foreign trade multilateral and
diverse from a Juche-orientated stand.
DPRK Delegations Leave to Attend International
Meetings
Pyongyang, May 28 (KCNA) -- A delegation of the
Ministry of Railways led by Kim Yong Sam,
minister of Railways, left here on May 28 by air
to participate in the 32nd ministerial meeting
of the Organization of Railways Cooperation to
be held in Kishinyov, Moldova and another
delegation led by Pak Jong Gun, vice-chairman of
the State Panning Commission, to participate in
an international conference on renewable energy
to be held in Bonn, Germany.
S-N Economic Talks Slated for Next Week
A new round of Inter-Korean Economic Cooperation
Promotion Committee talks will be held in North
Korea's capital city of Pyongyang starting next
Wednesday.
A South Korean delegation led by Vice Finance
and Economy Minister Kim Gwang-lim will arrive
in Pyongyang via China on a chartered flight,
according to the Unification Ministry.
134 companies apply for spot in Gaeseong
The state-run Korea Land Corp. said yesterday
that it had received applications from 134
companies to move into the test zone of the
industrial complex in Gaeseong, which is being
developed jointly by North and South Koreas.
Korea Land said it would choose 15 companies and
will make contracts with the selected companies
on June 14. The companies that sign contracts
will move their plants into the zone and begin
operating within this year.
"We prefer labor-intensive companies with sound
financial conditions to create many jobs," an
official at the state-run company said. [Kaesong]
Korea Ulrim Transportation Company Starts
Operation
Pyongyang, May 27 (KCNA) -- The Korea Ulrim
Transportation Joint Venture Company has started
operation in the Democratic People's Republic of
Korea. The company, located in Raknang District,
Pyongyang, has a lot of buses, trucks and other
vehicles for long-distance transportation at
home and abroad.
It, which has branch offices in Hamhung, Haeju,
Chongjin, Sinuiju and other cities, ensures
transportation of passengers and freight between
Pyongyang and provincial capitals and between
counties.
It will shortly begin passenger-bus service
between Pyongyang and Dandong, China.
Manager of the company Kim Ki Dok told KCNA that
the number of people visiting famous historical
sites, the Hyangsan area, the West Sea Barrage,
Mt. Jongbang and other scenic spots and demand
for freight transportation are on a steady
increase in the country. The company is taking
practical measures to meet the demand, he said.
It will further develop joint venture and
cooperation with other countries for increased
transportation
S-N Economic Talks Due Next Week
A new round of Inter-Korean Economic Cooperation
Promotion Committee talks will be held in North
Korea's capital city of Pyongyang starting next
Wednesday.
Joint Venture Cars Popular in Pyongyang: N.
Korean TV
North Koreans are reaching for their wallets at
an international fair in Pyongyang as two car
models produced by an inter-Korean joint venture
make their debut, a North Korean report said
Thursday. The minivan "Pokkugi" (Cuckoo) and
small pickup truck "Pokkugi 3," produced by
Pyeonghwa Motors Corporation, are drawing keen
attention among North Koreans, the (North)
Korean Central Television Station said
North studying Chinese reforms
North Korean officials in charge of cross-border
economic projects and South Korean businessmen
involved in them are visiting China to study its
successful introduction of capitalist-style
reforms in Shenzhen and Shanghai, both special
economic zones.
North Korean Officials Study Economy in China
By Ryu Jin
Staff Reporter
A group of North Korean officials in charge of
various inter-Korean economic projects are
visiting Shanghai and Shenzhen in order to study
China's thriving market-opening economic
programs, according to sources on Wednesday.
The economic officials' quiet outing
North Korean Officials in China to Study Economy
By Ryu Jin
Staff Reporter
A group of North Korean officials in charge of
various inter-Korean economic projects are
visiting Shanghai and Shenzhen in order to study
China's thriving market-opening economic
programs, according to sources on Wednesday.
The economic officials' quiet outing draws
attention as it comes amid the reclusive state's
efforts to open itself up and speed up economic
reform since it grabbed the world's eyes when
its leader Kim Jong-il made a surprise visit to
China last month.
Increasing the significance of the journey, he
added some South Koreans from Hyundai Asan Corp.
are accompanying the North Korean delegation
A Capitalist Sprout in N. Korea's Dust
Industrial Park to Broach Free Market
By Anthony Faiola
Washington Post Foreign Service
Sunday, May 23, 2004; Page A18 [Kaesong]
Finland to fund summit on 'Iron Silk Road'
Finland will provide financial support to an
international symposium that will discuss
transportation links between Europe and Asia.
Lauri Korpinen, the Finnish ambassador to Korea,
and Song Dahl-ho, president of the Korea
Railroad Research Institute, signed an agreement
yesterday for the gathering, to take place in
Seoul on June 17-18. Experts from member
countries of the Asia-Europe Meeting will
discuss creating an "Iron Silk Road," connecting
Europe and Asia by a land route.
Seventh Pyongyang International Trade Fair
Pyongyang, May 19 (KCNA) -- The 7th Pyongyang
International Trade Fair, which opened on May
17, is going on in Pyongyang. Displayed there
are various kinds of machine tools, equipment of
electric power system, light industrial goods,
daily necessities, electronic products and many
other goods presented by trade companies of the
DPRK and scores of companies of China, Malaysia,
Syria, Thailand, Italy and Taipei.
National Exports Exhibition
Pyongyang, May 19 (KCNA) -- A national
exhibition of export commodities is going on in
Pyongyang. On show at the Central Hall of Light
Industrial Samples are fibers, daily
necessities, footwear, electronic products,
foodstuffs and many other goods presented by
exports manufacturing units.
At the hall of samples diverse services will be
provided, which will include foreign trade and
commercial activities and export contracts will
be made.
S.Korea considering oil project with North
Seoul, , May. 19 (UPI) -- South Korea's state-
run oil company said Wednesday it was
considering taking part in developing an
offshore North Korean oil field.
N. Korea's Delegation to the UN Induces Investment to N.K. from Korean Residents in the U.S.
[Los Angeles,KOTRA]
According to a L.A.-based news agency, North Korea's delegation to the United Nations will attract foreign investment to the Kaesong Industrial complex from the Korean residents of the United States. In line with the peaceful mood of the two Koreas, they will, also, activate the bilateral interchange in various fields between North Korea and the Korean community within the U.S..
Cho Gil-hong and Park Pu-ung, consuls from North Korea's delegation to the United Nations, staying in L.A. at the invitation of L.A.'s Korean community and the "Korea Day Festival" organization, concurred with the above-mentioned plan on May 8, 2004.
North Korea's Golden Star Bank to Be Closed on June 30
[Vienna, KOTRA]
Once caught in the rumors of its business closure earlier this year, 2004, the Golden Star Bank, the only North Korean bank in Europe, will take steps toward its liquidation by returning their banking business license on June 30. According to an Austrian-based agency, the bankˇŻs closure was decided by its voluntary return of the banking business license. It was not due to pressure from either the Austrian government or any other external reason.
The Golden Star Bank had gone through an investigation from the FMS, the bank inspection board of Austria in June, 2003, because of charges of misleading management, furthermore, other Austrian banks were reluctant to do business with the Golden Star Bank around from the end of 2003. Those above-mentioned reasons are the most convincing opinions concerning the bankˇŻs closure.
However, the banking circles in Austria are expecting the Golden Star Bank will function as a liaison office for the NKˇŻs foreign currency banks after finishing its normal banking services. The banking account of the Golden Star has recorded assets around 15 million euros.
N. Korean Leader's Visit to Border City Draws Attention
[Yonhap,May.18th]
North Korean leader Kim Jong-il's recent trip to Sinuiju, a northwestern city bordering China, is drawing keen attention here due to the importance of the city. Sinuiju is a city Pyongyang designated as a special enclave with independent legislative, executive and judicial powers in 2002.
The project has been at a standstill since the arrest of Yang Bin, the Chinese-Dutch entrepreneur chosen by the North as Sinuiju's first governor, by the Chinese security authorities.
Some said his latest visit might be related to the train blast in Ryongchon although it was not known whether he made a stop at Ryongchon during the trip.
He otherwise may have directly received reports in Sinuiju from officials connected with the North's ad hoc government body for overseeing recovery efforts in Ryongchon, they pointed out.
International Trade Fair Opens in North Korea
The seventh annual Pyongyang International Trade Fair kicked off for a three-day run Monday in the North Korean capital, the North's official Korean Central News Agency (KCNA) reported.
More than 100 companies from over 10 countries, including Russia, China and Italy, displayed rolling stock, machines and equipment, electronics, electrical and metal goods, light-industrial goods, foodstuffs and daily necessities, the KCNA said.
"We will strengthen cooperation and interchange with any countries that are friendly to us," the (North) Korean International Exhibition Corp. (KIEC) President Ri Su-dok said in an opening speech.
The international event is the country's biggest trade fair, and has been held every year since 1998 under the sponsorship of the KIEC.
7th Pyongyang Internat'l Commodity Exhibition
Opens
Pyongyang, May 17 (KCNA) -- The 7th Pyongyang
International Commodity Exhibition opened at the
Three Revolution Exhibition Monday. The opening
ceremony was attended by officials concerned and
delegations of the DPRK and from different
countries and regions.
In a first, North labor to get wages directly
A Unification Ministry official said yesterday
that South Korean companies in the Gaeseong
industrial complex now under construction in
North Korea would be allowed to choose their own
workers from among a labor pool provided by the
government and pay them directly.
Seoul to Cover Losses in Private S-N Trade
By Ryu Jin
Staff Reporter
South Korean firms that suffer financial losses
in inter-Korean trade activities will be able to
get government subsidies of up to 500 million
won ($421,800) from Friday, unless the losses
were caused by their own fault.
Unification Minister Jeong Se-hyun told his
weekly press briefing yesterday that his
ministry revised relevant rules of the South-
North Cooperation Fund Law so the companies
could get subsidies for possible losses.
Jeong explained the companies suffering deficits
while trading with the North will be given
financial support that amounts to 50 percent of
their losses.
``The compensation measures will start tomorrow
from the trade area, affecting some 480 firms
involved in inter-Korean trade,'' he told
reporters. ``The plan will be expanded to the
area of processing brought-in materials from the
latter half of the year.''
Korean-Americans survey North
Despite an apparent appetite on the part of North Korea for investments, a group of Korean-American businessmen, who have just returned from a visit to several factories in the North, expressed deep skepticism over what might be possible.
"It would take a very long time before North Korea became an attractive place for foreign investment," said Cho Joon-hong, president of the New York Society of Korean Businessmen, Inc. "Right now, they lack the very basic raw materials, and the labor force is inefficient."
But it was clear how fervent the North Korean authorities were to have the businessmen invest in the North, asking the group to order materials from the factories.
"We told them straightforwardly that we could not because they really lacked the basics," Mr. Cho said. "We advised them instead to look at ways to sell their natural resources, such as minerals, fisheries and the like."
Mr. Cho said the South Korean market was a more natural destination for the goods they saw.
"Taiwanese companies do invest in the North, but it's miniscule," said Mr. Cho. Because the U.S. forbids direct investment in the North, any method to help the North would have to be done indirectly. [FDI] [Sanctions] [Exports]
North Korea Left Out of ADB Meeting in Jeju
By Kim Jae-kyoung
Staff Reporter
North Korea will not attend the 37th Annual Meeting of Asian Development Bank (ADB) on Cheju Island, which will run from May 15 to 17, according to the head of the Manila-based organization
NK Not Invited to ADB Meeting in Cheju
By Kim Jae-kyoung
Staff Reporter
North Korea will not attend the 37th Annual
Meeting of Asian Development Bank (ADB) on Cheju
Island, which will run from May 15 to 17,
according to the head of the Manila-based
organization. [Sanctions]
Interview With a Chinese-based Company Engaged in N. Korea Business Activity
The same as with the initial stages of the reforms in China, North KoreaˇŻs business environment is in its primitive level. Therefore, Chinese small and midsize businesses, which have quicker approval procedures than large conglomerates, can easily make inroads into the North Korean market.
N. Korea Eyes China as a Model for Development
The North had recently established seven major tasks, such as to replace chemical fertilizers with organic and microbial ones, to "revolutionize" its agricultural industry. In addition, the North Korean broadcast station on Sunday introduced China's wind power plant in Neimenggu Province. "The power plant, which will be completed in 2008, covers 200 square kilometers of land and is the largest in Asia," the KCBS said in a report.
The North also showed its interest in environmental protection by broadcasting a report on Saturday introducing China's environment watch system in Heilungjiang Province
Ground-Breaking Ceremony of Samsu Power Station
Held
Samsu May 7 (KCNA) --A ground-breaking ceremony
of the Samsu Power Station in Ryanggang
Province, the northern part of the DPRK, was
held on the spot Friday.
The power station, which will have a huge
generating capacity by use of water from the
Rivers Hochon and Unchong, will be greatly
helpful to solving the problem of electricity in
Ryanggang Province and developing the national
economy and improving the standard of the
people's living in the province.
Sunchon Cement Complex in DPRK
Pyongyang, May 6 (KCNA) -- The Sunchon Cement Complex is one of the major cement producers in the Democratic People's Republic of Korea. It, which started operation on April 15 Juche 66 (1977), covers hundreds of thousands of square meters. It has several limestone and argillite mines, a design office and branch factories.
The complex takes a good share in the construction of grand monumental edifices in the country. And some of its products find their way to foreign markets.
NK Pours Investments Into Shandong
M.A.Cho 28 April 2004
[Tsingtao, KOTRA]
According to the Shandong Foreign Trade & Economic Cooperation Office, North Korea invested US$2.73 million into Shandong as of the end of 2003. Most of NK's investment in Shandong were injected into the restaurant business, while other investment areas included facility manufacturing, leather processing, agro-fishery products processing and construction materials.
Meanwhile, bilateral trades between North Korea and Shandong amounted to $39.54 million in 2003, up 49% year-on-year. Of the total, ex-NK, Shandong-bound trades stood at $3.01 million, centering on limited number of items such as minerals, fishery products, leather raw materials and lumber. NK imported $36.53 million worth of goods, centering on raw materials and facilities such as meat, tires, textile materials, machinery and plastic products.
On a year-on-year basis, the amount of NK's trade deficit with China increased by about 50% in 2003, partly due to its deepening trade deficits with Shandong.
*Source: Shandong Foreign Trade & Economic Cooperation Office
N. Korea Newly Opens a Convenience Store
M.A.Cho 28 April 2004
A 24-hour convenience store has appeared in North Korea.
According to the Russian Internet source "NEWSru.com", it is reportedly said that the country's first convenience store started to greet customers in Munsu-dong, Pyongyang, where foreign embassies and commerce missions have been clustered.
Informed sources also said that this newly opened store deals with not only foodstuffs such as bread, milk, beer and cigarettes, but flowers and furniture as well.
The source also hinted that this convenience store can considerably alleviate North Korean's inconveniences because most NK stores are closed by 6 p.m. North Koreans buy goods in the convenience store with no complaints about its price list which is higher than those found in other markets. Plus, the Internet source reported that the sales amount of the convenience store is not high yet, since it has operated only for a short period of time, however, a steep sales growth is expected in the near future.
* Source : NEWSru.com
N. Korean Farming Threatens Environment
By THE ASSOCIATED PRESS
Published: May 5, 2004
Filed at 7:11 a.m. ET
BANGKOK, Thailand (AP) -- North Korean farmers growing crops on mountainsides
in a desperate attempt to ease food shortages are devastating the environment
and could set the stage for a future hunger crisis, a U.N. World Food Program
official said.
Anthony Banbury, Asia regional director for the WFP, said North Koreans in
upper parts of the country were cultivating hillsides on a large scale,
stripping elevated areas of topsoil and clogging sewage systems in populated
areas.
``They're plowing mountains to plant crops -- that's a terrible approach to
agriculture,'' he told reporters at The Foreign Correspondents' Club of
Thailand late Tuesday. ``All the topsoil gets washed off into cities, fills up
sewage systems, leads to flooding.''
Can efficient potato farms end North's food
problems?
North in Need: Part 2 of 6
North Korea's most urgent need is food aid:
While people in the North may no longer be
starving, as they were in the late 1990s, many
still suffer from malnutrition.
Every year, the South Korean government sends
300,000-400,000 tons of rice, worth billions of
won (millions of dollars), to the North. But
every year, the North lacks 1.5 million tons of
rice; what is currently provided is not enough.
North Korea's Largest Supermarket Will Open at the End of 2004
[Vladivostok, KOTRA]
ITAR-TASS reported on April 26, 2004, that as part of its economic reform efforts, North Korea is scheduled to open a large-scale supermarket store in Pyongyang by the end of this year. The news agency also commented that since last currency reform, the economic situation in North Korea has shown such signs of recovery as stable consumer prices and improved payment levels.
The biggest of its kind in the NK, the supermarket will be constructed as a 3-story building and it will be located in the downtown area near Pyongyang Central Station. The sales items will mainly include foodstuffs, garments and household goods, as well as, imported items from Japan and Russia.
The Pyongyang's new supermarket was modeled after the Beijing-based large discount store ˇ(r)Pearl Market.' It is expected that the opening of this supermarket can partly solve the chronic overcrowding problem within the Pyongyang Central Market, according to Itar-tass.
* Source: Apr. 26 2004, Itar
North Korean Workers in the Far East Russia Are Welcomed as Foreign Currency Earners
- Recording savings of US$3,000 for three years -
[Vladivostok, KOTRA]
It has been stated that most North Koreans who are working in the Khabarovsk, the Far East area of Russia are in their 30s unmarried and they have completed their military service. They are, also, better paid and record a good work performance and a low-rate of leaving their workplaces.
According to a related official, the monthly wage for the Khabarovsk N. Korean workers reaches about $450. Deducting various taxes and living expenses, around $100 can be saved a month which is a large amount, considering the average cost of living for a 4-member household or six months in Pyongyang is no higher than $50. If a North Korean worker saves $100 a month, he can make as much as $3,000 for three years.
Pyongyang Unlikely to be Admitted to ADB Soon: Bank President
[Yonhap,May.2th]
North Korea is unlikely to join the Asian Development Bank (ADB) for the time being due to opposition from the United States and Japan, the bank's top official said Sunday. "North Korea wants to join the ADB, but there is no consensus among member countries on it," ADB President Tadao Chino said in a meeting with Korean reporters.
Pyongyang has been trying to join the ADB since 1990 to boost economic cooperation with Asian countries and secure development funds, but there is no progress yet, he said.
US, Japan Oppose N. Korea's Admission to ADB
By Kim Yon-se
Korea Times Correspondent
MANILA - Japan and the United States showed a
lukewarm attitude over allowing North Korea to
become a member of the Asian Development Bank
(ADB).
ADB executives here said Pyongyang's future
entry into the international bank will
accelerate the reunification of the two Koreas
by making it easier for South Korea and other
nations to extend loans to the poverty-laden
North.
Despite repeated applications from the North for
the admission, the officials said, the U.S. as a
major shareholder of the ADB, has played a major
role in rejecting the nation, demanding disposal
of nuclear facilities.
In North Korea, a free market everywhere in chains
James Brooke NYT
Thursday, April 29, 2004
SEOUL The huge orange fireball that leveled a North Korean railroad town last week stamped an exclamation point on a report that spelled out how North Korea, once the peninsula's industrial showcase, is now its industrial wasteland.
Seventh Pyongyang International Trade Fair to Be
Held
Pyongyang, April 26 (KCNA) -- The Seventh
Pyongyang International Trade Fair will be held
from mid-May under the sponsorship of the Korean
International Exhibition Corporation. Rolling
stocks, machines and equipment, apparatuses for
developing up-to-the-minute technologies,
electronic, electrical and metal goods, light
industrial goods, foodstuffs, daily necessaries
and other commodities will be exhibited
Accident to Damage North's Economy
By Bae Keun-min
Staff Reporter
The catastrophic explosion that occured last Thursday at the Ryongchon Station
in North Pyongan Province of North Korea is forecast to impact adversely to the
North's economy.
The damages from the massive blast are expected to stumble the development plan
of the Shinuiju special economic zone, while imposing negative effects on the
North's economic reformation drive that has been made since July 1, 2002 in
earnest.
North could open up
Thursday's huge train blast in Yongcheon, North
Korea, will worsen the famine-stricken communist
nation's already dire economic situation, but it
may also work as a trigger to open up the
reclusive state, analysts said yesterday.
Blast Feared to Hamper Inter-Korean Projects
By Yoo Dong-ho
Staff Reporter
The devastating explosion that flattened a North
Korean railway station and its surrounding area
Thursday is feared to hamper inter-Korean
cooperation efforts such as cross border
economic projects.
With Pyongyang engrossed in efforts to rebuild
from the accident that killed at least 161 and
injured 1,300 in Ryongchon, 20 kilometers from
the border with China, Seoul government
officials predicted on Monday that ministerial-
level talks will be put off.
OAV Visited North Korea to Witness the Nation's Great Potential for Further Economic Cooperation
M A Cho 21 April 2004
It was reported that a business delegation to North Korea, dispatched by the OAV (German Asia-Pacific Business Association), visited the NK at the end of March, 2004. The delegation members reportedly paid a visit to major infrastructures such as the Nampo Port and they had business talks with North Korean enterprises.
Having already visited North Korea in 2003, the OAV economic delegation explained that the living environment in the NK has improved and that the notion of a market economy has started to be generated within the nation as available capital has gradually been funneled into the consumer area.
Meanwhile, the delegation maintained that although positive negotiations have not progressed as yet due to the NK's lack of political and legal stability and a weak fundamental structure, international investors will rush into the nation as soon as its political conflicts are resolved.
The delegation additionally predicted that the opportunities for foreign companies to make inroads into the NK will become abundant, if the nation?/SPAN>s infrastructure and energy supply condition is improved. The Germans revealed that the NK government should prove its reliability as a business partner for small-scale trade transactions, not to mention, large-scale transactions as well.
North Korea's Meritorious Artists Held an Oil Painting Exhibition in Qingdao
M A Cho 21 April 2004
Since the second half of 2003, North Korean enterprises have activated their businesses centered on the management of joint-venture restaurants in Qingdao, China. Under the animated business circumstances, contemporary oil paintings by North Korea's meritorious artists were exhibited in the same district for a five-day schedule from April 2.
Value of N. Korean Industrial Facilities Dwarfed by S. Korea's
M A Cho 21 April 2004
The value of North Korea's industrial facilities is far smaller than that of South Korea because they are superannuated and their production capacities are poor, the Bank of Korea said Wednesday. The North's industrial equipment and plants were valued at 19 trillion won (US$16.45 billion) as of 2000, the central bank said in a report.
Two Koreas to Hold Railway Talks This Week
M A Cho 7 April 2004
[Yonhap,Apr.6th]
South and North Korea agreed Tuesday to resume economic and other talks that were suspended because of military exercises and leadership turmoil in the South, Seoul government officials said. North Korea had unilaterally suspended two channels of dialogue scheduled for March, citing the presidential impeachment and joint South Korea-U.S. military exercises.
North Korea Imported Agricultural Machinery Worth US$150,000 From China
M A Cho 14 April 2004
The two sides had made a preliminary consultation on a joint venture in the agricultural machinery area and the Chinese delegation, also, gave their proposed intention on a joint venture after visiting North Korea's Golden Star Tractor Factory.
This March, 2004, as a return visit for confirming this joint venture, six North Korean officials from the Ministry of Metal Machinery Industry of the NK visited the Ida Group's subsidiaries engaging in assembly, diesel engines, heat processing and oil pumps, which finally reassured their joint projects.
In the initial stage of the joint venture, North Korea is supposed to import agricultural equipment such as tractors and then to extend its imports to include various parts. The North is scheduled to produce around 3,000 pieces of agricultural equipment per year and the joint project will be widen to the processing machinery, as well as, automobile fields.
According to a source from the Ida Group, the company had exported a total of around 20 sets of tractors and seeding machines worth of $150,000 until the end of March via dealers in Dandong, China. The source also mentioned that the joint production of agricultural machinery will be accelerated if North Korea designates it as an official promotion item supported by the North Korean government.
Competition Heating Up Over Business in Kaesong Industrial Park
M A Cho 14 April 2004
South Korean companies are increasingly vying with each other to set up operations at the future Kaesong Industrial Park in North Korea, sources said Wednesday.
Officials at Hyundai Asan and the Ministry of Finance and Economy said 1,600 companies have expressed intentions to build factories at the 1 million pyeong (3.3-million square meter) park that will be built by 2007.
Since the first stage of the park can only accommodate 250 factories, competition has already surpassed a rate of six to one, they said. The interested companies are engaged in labor-intensive businesses like clothing, textiles, shoemaking and stuffed goods.
Competition to win plots of land in the 10,000-pyeong initial section of the park, which is to be established by the end of the year, is expected to heat up even further. The entire complex, once completed, will be built on 8 million pyeong of land just over the demarcation line that separates South and North Korea.
Hyundai and the Korea Land Corp. agreed to lease the land from North Korea for 18.3 billion won (US$16.3 million) last week, with companies expected to pay 150,000 won per pyeong. Organizers of the park said the majority of the companies want to relocate to the other side of the Demilitarized Zone because high wages and unstable labor-management relations are making it hard to do business in the South.
They also said that moving to North Korea was seen as an alternative to shifting their existing plants to China or Southeast Asia.
Business community insiders said companies planning to establish operations in the North will be barred from shipping goods to the United States, and no plants that produce "strategic" commodities will be allowed to operate there. They also said key infrastructure like electricity, water and sewerage facilities must be resolved before full-scale relocation can begin.
Two Koreas Fix Schedule to Operate Inter-Korean Trains
M A Cho 14 April 2004
South and North Korea have agreed to operate trains on two inter-Korean rails now under construction on the peninsula's east and west coasts between 8 a.m. and 5 p.m. if they are connected across the demilitarized zone. The trains will be operated between both sides' stations closest to the military demarcation line, which was drawn after the 1950-53 Korean War.
The two sides also agreed to inform the other side of the daily train operation schedule before operation time. According to the 16-clause agreement on inter-Korean train operation adopted and initialed in Kaesong, North Korea, on Saturday, the parties concurred that they will replace their train staff and locomotives on Jan. 1 every year.
The two Koreas also agreed to use a common frequency for wireless communications with the trains. The agreement calls for both sides to form a joint committee for inter-Korean train operation to handle all operational issues, including accidents, fares and facility improvement.
The joint committee is to consist of five to 11 members from each side and will open a regular meeting once a year and can conduct other meetings if necessary.
Les éclaireurs du capitalisme rôdent ŕ Pyongyang
Des firmes occidentales se placent en Corée du Nord, en pariant sur une ouverture.
Par Michel TEMMAN
mercredi 07 avril 2004 (Liberation - 00:00)
Séoul envoyé spécial
rčs discrčtement, par l'entremise de consultants indépendants, de grandes entreprises occidentales parient sur l'avenir en prospectant discrčtement en Corée du Nord et en y développant des affaires. Curieuse posture, ŕ l'heure oů la réunification coréenne est loin d'ętre ŕ l'ordre du jour.
Kim Il Sung's Efforts for Development of Poultry
Farming
Pyongyang, April 20 (KCNA) -- Many modern
chicken plants have been constructed in the
Democratic People's Republic of Korea. The
foundation for ever developing poultry farming
in the DPRK was laid long ago by President Kim
Il Sung, who made all efforts to sufficiently
provide the people with meat and eggs.
Inter-Korean Meeting Held
Phaju, April 22 (KCNA Correspondent) -- The
third meeting of the North-South Working Panel
for the Settlement of Accounts was held in
Phaju, south Korea, from April 20 to 22. At the
meeting the north and the south discussed issues
that may arise in settling accounts in 2004 for
implementing the agreement on the settlement of
accounts that had already been concluded and
adopted an agreement.
Asan, KOLAND Permitted to Develop Kaesong Complex
By Kim Sung-jin
Staff Reporter
The Kaesong industrial park development project by South Korea is expected to
lengthen its strides as the government on Friday endorsed Hyundai Asan and
state-run Korea Land Corp. to co-develop the industrial park in the North.
Land Lease Contract Signed between North and
South
Kaesong, April 13 (KCNA) -- A contract for the
lease of one million-phyong factory plottage at
the first phase of the construction of the
Kaesong Industrial Zone was signed in Kaesong
today.
Northern facilities worth 0.4% of South's
The total value of North Korea's production
facilities is only 0.4 percent that of South
Korea's, according to an evaluation released by
the Bank of Korea yesterday.
The report said that most of North Korea's
facilities have greatly deteriorated, and its
auto, electrical, petrochemical and textile
factories are 30 years behind those of the
South.
All Aboard! But Don't Relax. Your Trip Is
Already Over.
By HOWARD W. FRENCH
Published: April 22, 2004
Stuart Isett/Polaris, for The New York Times
On Shanghai's magnetic levitation train, the
world's first in commercial service, it takes
just eight minutes to get to the airport in a
burst of speed that transforms the outside world
into a blur of streaking geometric abstractions.
SHANGHAI, April 16 - There was something almost
prosaic about the way the sleek white train
pulled out of the city terminal: no whoosh, jolt
or roar as it progressed gently through a long,
lazy curve, passing the station's flowered
gardens, farmers' plots and then a jumble of
factories.
Kim Jong Il Inspects Cattle Ranch of KPA Unit
Pyongyang, April 4 (KCNA) -- Supreme Commander
of the Korean People's Army Kim Jong Il, general
secretary of the Workers' Party of Korea and
chairman of the National Defence Commission of
the Democratic People's Republic of Korea,
inspected the July 18 Cattle Ranch of KPA Unit
580
S-N Economic Talks to Resume on Tuesday
By Yoo Dong-ho
Staff Reporter
South and North Korea will resume economic talks
on Tuesday in Kaesong to reach a consensus on
key issues over the inter-Korean industrial
complex to be built in the border town of the
reclusive country.
Inter-Korean talks set to resume in North
Inter-Korean economic talks, suspended after the
North complained about the recent joint South
Korea-U.S. military exercise, will resume in the
North's Gaeseong next week, South Korean
officials said yesterday.
Two separate meetings, on cross-border railroad
projects and Imjin River flood prevention
measures, will take place over three days
starting Thursday
Moody's still negative on Korea
Moody's Investors Service said Thursday that it
had maintained its sovereign credit rating on
South Korea at A3 and its outlook on the country
at "negative," after concluding an annual review.
"Political turmoil has subsided following the
impeachment of President Roh Moo-hyun, but
uncertainties may temper economic growth
prospects this year," the global credit rating
agency said in a written review on Korea.
Moody's said the efforts of the countries
involved in the six-party talks on North Korea's
nuclear issues were having positive influence on
Korea's sovereign rating, even though Pyeongyang
is still refusing to completely give up its
nuclear weapons programs.
Kim Jong Il Meets Foreign Minister of PRC
Chinese Foreign Minister Li Zhaoxing and his
party visited a market in Thongil Street on
March 24.
"Being briefed on the management of the market,
they went round the market with keen interest,"
the official KCNA reported.
The KCNA also reported that Li said he had deep
impressions of the well-furnished market.
N. Korea's Exports To China Up 54 Pct So Far This Year
M.A.Cho 31 March
North Korea's exports to China recorded US$38 million in the first two months of this year, up 54 percent on the year, a South Korean nonprofit business association said Tuesday. But Pyongyang's trade deficit with its communist ally shrank to $29 million in the same period. Last year, the figure stood at $232 million.
North Korea imported $67 million worth of goods from China, including fuel and meat, while exporting $38 million worth of goods, mostly steel, to its large neighbor in January and February,
KTX Officially Begins Service
Making South Korea 5th Nation in The World to
Have Bullet Train System
By Byun Duk-kun
Staff Reporter
The nation's new high-speed railroad service,
the Korea Train Express (KTX), began service on
Thursday, launching Korea into a new era of high-
speed railway travel.
KTX No. 74, a 5:05 a.m. departure from Pusan for
Seoul, promptly left the Pusan Station, making
Korea the fifth nation in the world to have a
high-speed railroad system, following France,
Germany, Japan and Spain.
N.Korea Set to Release Environment Report with U.N.
By REUTERS
Published: March 31, 2004
Filed at 5:31 a.m. ET
SOGWIPO, South Korea (Reuters) - The first report on the environment of North
Korea is due out in a few weeks and will underscore the need for urgent action
on many pollution fronts, officials said on Wednesday.
A two-year joint study with the United Nations Environment Program showed that
isolated North Korea has not escaped environmental problems that require urgent
responses, ranging from air, water and land pollution to battling dust and sand
storms blowing from northern China, they said.
``The North Koreans recognize that work needs to
be done,'' the director of the UN environment
program's Asia-Pacific region, Surendra
Shrestha, told Reuters.
``And they were very cooperative for the survey
that was done over two years,''
Tree Planting Brisk in DPRK
Pyongyang, March 29 (KCNA) -- Spring tree
planting is making brisk headway across the
DPRK. Tens of millions of trees are being
planted by working people and school youth and
children in different parts of the country
everyday through a dynamic drive.
N.K bank in Europe may shut down
2004.03.30
North Korea's only bank in Europe may be forced to shut down due to a lack of business from customers, a South Korean trade agency said Monday.
Citing information from Austria's banking regulators, the (South) Korea Trade-Investment Promotion Agency said the North's Golden Star Bank in Vienna has virtually halted handling all cash transactions since last month.
"The European branch of the North Korean state bank fired two local employees this month to replace them with the staff from its headquarters in Pyongyang," a KOTRA official said.
The North Korean bank denied that it will fold.
"We have no plan to withdraw the banking business," a spokesperson for the bank said in a recent interview with a local Austrian daily.
SPA Session Discusses State Budget
Pyongyang, March 25 (KCNA) -- The Second Session
of the 11th Supreme People's Assembly of the
DPRK held at the Mansudae Assembly Hall on March
25 discussed the fulfillment of the state budget
for Juche 92 (2003) and the state budget for
Juche 93 (2004). Finance Minister Mun Il Bong
delivered a report on this.
He said:
The planned state budgetary revenue for last
year was fulfilled at 100.9 per cent.
Last year all the people bought public bonds for
people's life with the high consciousness of
being citizens and patriotism. As a result, a
large revenue from the public bonds was added to
the state budget and not a small amount of funds
were donated to the state.
The planned state budgetary expenditure was
fulfilled at 98.2 per cent last year.
The government spent 15.7 per cent of the total
budgetary expenditure for the defence industry
and 23.3 per cent for the national economy.
DPRK Premier Delivers Report at SPA Session
Pyongyang, March 25 (KCNA) -- Pak Pong Ju,
premier of the Cabinet, made a report on the
work of the Cabinet in Juche 92 (2003) and its
tasks for Juche 93 (2004) at the second session
of the 11th Supreme People's Assembly held at
the Mansudae Assembly Hall here Thursday. He
said that last year the Cabinet made a huge
investment in light industry and agriculture for
their development while consolidating heavy
industry, a foundation of the national defence
industry,
PRC Foreign Minister and His Party Visit Market
in Thongil Street
Pyongyang, March 24 (KCNA) -- Foreign Minister
of the People's Republic of China Li Zhaoxing
and his party visited a market in Thongil Street
on March 24. Being briefed on the management of
the market, they went round the market with keen
interest.
After inspection the foreign minister said he
had deep impressions of the well-furnished
market.
He wished the Korean people greater success in
socialist construction under the wise leadership
of Kim Jong Il. [Economic reform]
N Korea aims for 'leaping' economic progress
By Andrew Ward in Seoul
Published: March 26 2004 12:13 | Last Updated: March 26 2004 12:13
North Korea has ordered its economic officials to increase trade with the outside world and focus on making businesses profitable, signalling acceleration in the communist country's market reforms.
Pak Pong-ju, North Korea's premier, on Friday told the country's Supreme People's Assembly that the economy must make "leaping progress" this year by increasing exports, raising output and absorbing foreign technology.
The comments supported growing evidence that the world's most isolated and totalitarian state is gradually liberalising its economy, despite the international dispute about its nuclear weapons programme.
Chinese minister gets taste of N Korea reforms
By Andrew Ward in Seoul
Published: March 25 2004 4:00 | Last Updated: March 25 2004 4:00
North Korea yesterday gave a rare public display of its fledgling economic reforms, when China's foreign minister toured a new commercial market in Pyongyang.
Li Zhaoxing also met Kim Jong-il, North Korea's reclusive leader, during the first visit by a Chinese foreign minister to Pyongyang for five years.
Talks about North Korea's nuclear weapons programme were expected to be the main purpose of Mr Li's visit.
The placing of a market on Mr Li's itinerary was significant because it implied official approval for the private commerce that has flourished in some parts of North Korea since the communist country began reforming its rigid command economy nearly two years ago.
Until recently, private commerce was conducted in an illicit black market that was tolerated but never officially endorsed. Mr Li's visit is the strongest indication to date that markets are now accepted as a legitimate part of the economy.
Deal falls apart on Ssangyong
The negotiations over the sale of Ssangyong Motor to China National
Bluestar Group collapsed yesterday after the auto company's creditors
said they failed to receive needed guarantees from China in order to
move forward with the deal._
Dow Jones reported yesterday that Bluestar abandoned the bid, quoting
its spokeswoman Li Aiquing in Beijing. "The difference between what
they were requesting and what we were willing to give was too much,"
she said, according to the news agency report.
Postponement of Inter-Korean Meetings
Proposed
Pyongyang, March 22 (KCNA) -- The north side proposed the south
side to hold the fourth meeting of the Panel for the Reconnection of Rail
and Road Links between the North and the South and the third meeting
of the Panel for Flood Control in the River Rimjin in early April in
Kaesong after the south side's reckless war exercises came to an end [Joint US military]
Kimchi to have role in North-South ties
It will soon be possible to serve a Pyeongyang
delicacy, "white kimchi," at dining tables here.
The first kimchi joint venture by North and
South Korean companies will begin operations in
June.
Goh Hopes Bullet Train to Speed Hub Plan
By Shim Jae-yun
Staff Reporter
Acting President Goh Kun on Wednesday said the
government would press for efforts to promote
the nation as the logistics hub of Northeast
Asia with the opening of the high-speed railway
starting April 1.
Stable Manpower Supply Key to Kaesong Success
By Yoo Dong-ho
Staff Reporter
A stable supply of North Korean labor should be
secured before South and North Korea push for
the establishment of a joint industrial complex
in the border town of Kaesong in the North, a
professor claimed on Tuesday.
OAV1 Held a Workshop on the "Investment Situation and Prospects in the NK
M.A. Cho 24 March 2004
Imche Blom, the CEO of IMAG which is a subsidiary of Messe Munchen, Felix Abt, the former CEO of ABB, and Torben Coy, the president of the European Tehcnis Phils Ltd. participated in the meeting as lecturers.
Entrepreneurs engaged in businesses with the NK showed an affirmative assessment that although there still remains long way to go for North Korea to realize political reform, there were signs of some small progress in the change of the nation's economic structure and the opening of its market.
These lecturers at the workshops recommended that even if there are many initial difficulties for doing businesses with NK, foreign entrepreneurs should take it as a part of the investment for prior occupation of the future market there. They predicted in unison that since the NK's young leaders possess specialized knowledge for each field, the business environment there will gradually be improved. They also emphasized that the official support from the North Koran government is quite necessary to boost foreign companies' business activities there
North Korea Seeks Rent Hike for Industrial Complex Site
OAV1 Held a Workshop on the "Investment Situation and Prospects in the NK
M.A. Cho 24 March 2004
The inter-Korean project to build an industrial complex in the North Korean city of Kaesong hit a snag after Pyongyang abruptly demanded higher rent for the site, officials at a state-run South Korean firm engaged in the project said Wednesday.
In the latest economic talks in Seoul, the Koreas agreed to start the construction of a model industrial facility on a 1-million-pyeong (1 pyeong equals 3.3 square meters) site in Kaesong, a town just north of the Demilitarized Zone that separates the countries, in March for completion by June.
The two sides also agreed to allow South Korean firms to move into the complex starting in September. "North Korea previously pledged to offer the land almost free of charge, but the North abruptly switched its position to demand a considerable amount of rent for land during last week's working-level talks on the project," one of negotiators at the Korea Land Corp. said on condition of anonymity.
Let a Hundred Russian Kilowatts Bloom
By JAMES BROOKE
March 23, 2004
Another project would bring a line through North Korea to South Korea, an enclave of high electricity prices that would be the real economic prize for Vostok-Energo.
If investment goes according to plan, he said, his company could be exporting to China and the Koreas a total of seven billion kilowatt-hours a year by 2010.
Aimed at eventually bringing Russian electricity to South Korea, the line features the tallest power pylons in Russia, 625 feet, and the wires jump the Amur River in two, one-mile-long spans.
The price for reaching South Korea and its high energy prices would be to pass through North Korea. Analysts see this line as part of a wider international initiative that would let electricity go to North Korea in return for Pyongyang's bringing its nuclear weapons program under international controls.
DPRK, First Tax-free Country
Pyongyang, March 19 (KCNA) -- March 21 is the
30th anniversary of the promulgation of the law
on abolishing the tax system for good and all in
the Democratic People's Republic of Korea. Since
the law was put into effect, the DPRK has become
the first tax-free country in the world.
Income Similar for Koreans, Greeks, Portuguese
By Kim Yon-se
Staff Reporter
The nation's per-capita gross national income
(GNI) topped $12,646 in 2003, up 10 percent from
a year ago. The income level is similar among
Korea, Greece and Portugal, as Korea is ranked
within the top 50 in global income last year.
Made-in-NK Kimchi to Be at Table
North Korean traditional kinds of kimchi will be
available at tables in South Korea from as early
as June.
The Ministry of Unification on Monday issued an
approval to G-Hanshin and Kyoungpyong
International for investing $2.4 million in the
North to set up factories for heath drinks and
kimchi on grounds of 16,800 square meters in
Pyongyang.
Tata to market Daewoo trucks on 3 continents
Tata Motors' executive director for commercial
vehicle division, Ravi Kant, 59, told a press
conference yesterday that Tata Motors would
export Daewoo Commercial Vehicle Co.'s trucks
through its sales operations in Southeast Asia,
Africa and South America.
"Tata Motors intends to capitalize on Daewoo's
truck manufacturing technologies," Mr. Kant
said.
Tata Motors recently acquired former Daewoo
Motor Co.'s truck unit for 120.6 billion won
($104 million). Tata Motors is an affiliate of
the India-based Tata Group.
"Tata Motors' acquisition of Daewoo Commercial
Vehicle is the biggest investment in Korea by an
Indian company," Mr. Kant said.
U.S. Relief Agency Provides English Lessons to North Korean
M.A.Cho 17 March 2004
A U.S. relief agency has recently dispatched two Canadian English teachers to North Korea and began to provide English lessons for 60 North Korean scientists, including those who plan to study abroad, Radio Free Asia (RFA) said Saturday.
The lessons, arranged by the Pennsylvania-based Mennonite Central Committee (MCC), a Christian group, is an 18-month program for North Koreans, and the Canadian couple is to teach them English for six weeks, until April.
Telephone Message to Chairman of South Side
Pyongyang, March 16 (KCNA) -Choe Yong Gon,
chairman of the north side to the North-South
Committee for the Promotion of Economic
Cooperation, today sent a telephone message to
his counterpart of the south side as regards the
venue of the third meeting of the north-south
panel for settlement of accounts
New Species of Turf Bred
Pyongyang, March 15 (KCNA) -- The Institute of
City Management of the Democratic People's
Republic of Korea has bred a new species of
turf. It, a variety of the short golden turf, is
very popular among people.
It grows only 6 centimeters so that it does not
need to be cut. The new species spreads its
stalks and leaves more than four times as fast
as other species of the golden turf.
S-N Economic Talks Canceled Over Venue
By Kwak Seung-jin
Staff reporter
South and North Korea on Monday failed to hold
working-level economic talks as scheduled,
because Seoul rejected Pyongyang's sudden
request to change the venue of the talks.
Sale of Ssangyong gaining momentum
The sale of Ssangyong Motor appears to be
gaining momentum. Its creditors said that today,
China National Bluestar Group will submit its
final bid to take over the troubled automaker.
In addition, Ssangyong's labor union, which has
strongly opposed the sale, is gradually coming
around to accepting the takeover by Bluestar
Group, as long as the proposal is satisfactory.
Successes in Field of Economy and Science
Pyongyang, March 10 (KCNA) -- The February 17
Shock Brigade of Scientists and Technicians of
the Democratic People's Republic of Korea has
registered successes in the field of economic
science. Scientists and technicians dispatched
to the coal mining industrial sector have
invented and developed various kinds of modern
equipment and advanced cutting methods suited to
the geological features and coal seam conditions
of the country.
North Korean Garments to Be Under Application of the US Tariff of 76%
In January, 2003, the NK had shipped $59,000 worth of NK-made ladies' dresses made of synthetic fabrics (HS Code: 620419) to the US.
The current tariff on North Korean-made garments is around 76%. The NK-made garments appeared to be under the application of Column 2, an ultra-high tariff born by non-market economy countries. In general, textiles and garments are under application of Column 1 with tariffs ranging from 4.4% to 32%, but their tariff soars to 35%-90% in case they are subject to Column 2. [Sanctions]
N. Korea to Verify Origin of Products for Trade With S. Korea
North Korea has agreed to authenticate the origins of its products exported to the South for the first time, paving the way for licensed trade between the two nations
Seoul had concerns that products from other countries with cheap labor costs, including China and Russia, might flow into the South under a label stating they are of North Korean origin. North Korean products enjoy custom-free status in the South.
They said the North responded "with integrity" to the South Korean request, turning away from its previous reluctance to deal with verification of origins.
Over 1,500 S.K. Firms Seek Move to N.K Industrial Park
Over 1,500 South Korean companies are seeking to move into a huge industrial park in the North Korean border town of Kaesong,
South Korea's Hyundai Asan Corp. is building the park for more than 1,000 small- and medium-sized South Korean companies seeking to take advantage of the North's cheap but skilled labor. Development of the complex, exclusively for South Korean labor-intensive businesses, has been stalled partly because of tensions over Pyongyang's nuclear weapons program.
Rise of foreign capital raises alarms
Some domestic analysts are expressing concerns
about the recent influx of foreign capital, as
domestic banks are being sold one after another
to foreign investors and SK, one of the nation's
largest business groups, is facing a hostile
takeover by a foreign fund.
Rise of foreign capital raises alarms
Some domestic analysts are expressing concerns
about the recent influx of foreign capital, as
domestic banks are being sold one after another
to foreign investors and SK, one of the nation's
largest business groups, is facing a hostile
takeover by a foreign fund.
2 Koreas prod plant complex project a bit
further along
South Korean companies will begin next year to
move into the "first phase development area" of
the Gaeseong Industrial complex in North Korea,
an industrial site of 3.1 million square meters.
In something of a departure, Mr. Kim said, there
was no request from North Korea at this meeting
for more food aid. The next meeting will be held
in Pyeongyang on June 2.
[Kaesong]
Regulations on Management of Foreign Currency in
Kaesong Industrial Zone Adopted
Pyongyang, March 5 (KCNA) -- The Presidium of
the Supreme People's Assembly of the DPRK
adopted a decision on regulations on the
management of foreign currency in the Kaesong
Industrial Zone on February 25. The 18 article-
regulations are intended to establish a strict
order in managing foreign currency in the zone
and thus contribute to a smooth circulation of
foreign currency there.
An enterprise shall open a foreign currency
account with a bank established in the zone and
any enterprise willing to open an account with
banks in south Korea or in a foreign country
shall send a written notification to the
Industrial Zone Management Body.
Regulations on Advertisement in Kaesong
Industrial Zone Adopted
According to the regulations, any enterprise,
individual and economic body is free to make
advertisements in the zone and may conduct
advertising business when necessary
Regulations ban any ad hamstringing the process
of improving the north-south relations, decadent
and fraudulent ads, ads for commodities whose
production, sale and supply are prohibited and
banned services and those ads unreasonably
comparing or slandering other enterprises or
commodities or services.
Ads shall be made in Korean language. An
advertiser may use international official
languages or other languages when necessary.
Kaesong Industrial Complex to Open in 2005
By Yoo Dong-ho
Staff Reporter
South Korean small- and medium-sized companies
will be able to move into an inter-Korean
industrial complex in Kaesong, North Korea next
year, two years ahead of schedule.
South Korea to Buy NK Sand
By Bae Keun-min
Staff Reporter
The South will buy sand from North Korea from next week to ease shortages in Seoul and nearby satellite cities.
Kookyang Shipping, an operator of maritime shipping between the two Koreas, said on Friday it has received a permission from the South's government to transport sand collected in Haeju bay of the North.
Koreas Agree to Open Kaesong Industrial Complex
Next Year
By Yoo Dong-ho
Staff Reporter
South Korean small and medium-sized companies
will be able to move into an inter-Korean
industrial complex in Kaesong, North Korea next
year, two years ahead of schedule.
Another round of inter-Korean economic talks
will be held from June 2 to 5 in Pyongyang.
Wrapping up its four-day visit, the 27-member
North Korean delegation, led by North chief
delegate Choe Yong-gon, left Incheon
International Airport for Pyongyang via Beijing.
Two Koreas Agree to Set Up Liaison Office in Kaesong
By Yoo Dong-ho
Staff Reporter
Working-level officials from the two Koreas met formally on Thursday to close a
deal over the stalled cross-border economic
projects during a marathon conference
inter-Korean economic talks
Vice Finance and Economy Minister Kim Gwang-lim,
right, shakes hands with chief North Korean
negotiator Choe Yong-gon prior to the start of
the eighth inter-Korean economic talks at the
Grand Hilton Hotel in Seoul, Wednesday. inter-Korean economic talks
Shipbuilders in China send new challenge
"We now lag behind Korean shipbuilding
companies. But just give us 10 more years. We
will overtake Korea," said Gu Baolong, Chairman
of the board at Hudong-Zhonghua Shipbuilding
(Group) Co.
Spring Land Management in DPRK
this year's general mobilization for land
management from March to May includes tree
planting, building of hundreds of kilometers of
dikes and scores of parks and recreation
resorts, river improvement and construction and
repair of many fish-breeding farms.
Saplings of good species will be planted in over
1,500 hectares of land including streets,
residential quarters, parks, recreation resorts
and roadside in Pyongyang.
Projects of facelifting dwelling houses along
major streets are under way.
North Side's Delegation Leaves for Seoul
Pyongyang, March 2 (KCNA) -- The north side's
delegation led by Choe Yong Gon, vice-minister
of Construction and Building-Materials
Industries who is north side's chairman of the
North-South Committee for the Promotion of
Economic Cooperation, left Pyongyang today to
participate in the 8th meeting of the committee
to be held in Seoul
'Asian Highway' to Connect 31 Countries
By Byun Duk-kun
Staff Reporter
People driving on the nation's Kyongbu
Expressway or the Seoul-Pusan Expressway will
soon have to realize that they are driving on
part of a 140,000-kilometer highway connecting
31 Asian countries.
A set of new expressways, provisionally named
the Asian Highway, may be constructed to connect
the country with 30 other Asian countries, the
Ministry of Construction and Transportation said
on Tuesday.
Envisioned and promoted by the United Nations Economic and Social Commission
for Asia and the Pacific (UNESCAP), the highway will connect 31 countries in
the Asian region including the two Koreas, Japan, China, Vietnam, India and
Russia, according to the ministry.
The countries will meet in Shanghai, China, on April 26-28 to sign an agreement
to establish a total of 55 new highway routes, 140,000 kilometers in length,
connecting Asian countries.
The ministry expects the new highways, if built, would greatly help the nation
become a logistics hub of Northeast Asia because the envisioned plan also
includes two expressway routes departing from Pusan, the country's largest port
city in the southern part of the peninsula.
Asian Highway-1 (AH-1), from Pusan to Pyongyang and then to Istanbul in Turkey,
would be a new ``silk road'' connecting the country directly with those
countries in Southwestern Asia as well as in Europe.
AH-1 will use the Seoul-Pusan expressway while the other Asian Highway also
departing from Pusan will take the National Road No. 7 along the east coast,
which will be connected to Wonsan in North Korea.
Dandong's "Pyongyang Market Place" Becomes Animated
Most stores in the 'Pyongyang Market Place' are run by Chinese in the North who have returned to China. Since these Chinese people have a free access to the NK, they are enjoying a heyday of business by finding and selling items that will be popular in the North Korean market.
S. Korea Resumes Reconnection Work on Cross-border Railway
3 March 2004
The South Korean military completed 65 percent of the reconnection work on the southern part of the Donghae Line, while the North has done about 60 percent, the officer added. As for the Gyeongui Line, the South finished reconnection work in the southern part of the border, while the North has done about 90 percent.
Don't look back - something's gaining in the west
Behind the rapid Chinese economic growth are its
vibrant companies, growing fast in scale and
competitiveness. But much of their activity is
shrouded. Public information is scarce, they
don't like photographers, and they especially
don't like the Korean media.
Last year, Haier Group became the largest home
appliance maker in the world, and is aiming at a
spot on the Fortune International 500. "I think
we can achieve the new goal by next year," said
Wu Gesong, the vice chairman of Haier's board.
That close cooperation between the Chinese
government and companies seems to be the secret
of the success of the Chinese economy, which has
boasted about 10 percent growth every year
during the past decade.
Inter-Korean Economic Talks to Start on Tuesday
By Yoo Dong-ho
Staff Reporter
A new round of Inter-Korean Economic Cooperation Promotion Committee talks will
be held in Seoul starting on Tuesday, marking the first inter-Korean dialogue
since the end of the six-party meeting in Beijing on Saturday.
Trade with the NK Sharply Increased in Yanbian in 2003
Yanbian province, the self-governing district in China, has recorded a steep increase in its trade volume with North Korea in the year 2003, especially in the export area of grain.
According to the Yanji customhouse, the total export volume of grain from Yanbian to North Korea in 2003 amounted to 55,969 tons reaching its highest level. The figure is, also, a meaning 12.4% growth from that of the same period in 2002.
Uri Chairman Proposes Korea-Japan Tunnel
By Yoo Dong-ho Staff Reporter
Uri Party chairman Chung Dong-young on Friday proposed that an undersea tunnel between South Korea and Japan be built to boost bilateral trade.
``If the 15-kilometer-long tunnel is built, Japanese railroads could be linked to European cities through an inter-Korean railroad, the Trans- Siberia Railway and the Trans-Chinese Railway,'' Chung said.
Foreigners Own Land, Size of Songnam
The area of foreign-owned land is about
equivalent to the size of Songnam, a city south
of Seoul in Kyonggi Province with 141.95 million
square meters of land, or about one fourth of
Seoul's total area with 605.52 million square
meters, according to the ministry.
Pyongyang: Will Its Recovery Speed A Deal?
The BusinessWeek, March 1, 2004
..//..Energized Economy. Indeed, it caused a stir in Washington
when several American experts on Asia returned from a visit to
the North in January and reported that a surprisingly vibrant
small-business sector was helping to energize the long-
battered economy. Contrary to many experts' opinions, economic
reforms seem to be having an effect. To provide an incentive
for higher production, the government hiked official prices
for food and basic necessities by up to 55-fold and wages by
an average 18 times in July 2002. Since then, prices in private
markets have more than tripled, while the supply of goods has
improved. Aided by good weather and legal changes that permit
larger private farm plots, grain production is up by 7.6%
since 2001 -- though still a million tons short of Pyongyang's
needs. Private restaurants and bakeries are popping up. "We
saw a market economy beginning to emerge. This is not a regime
that's going to implode," says John W. Lewis, a Stanford
University Asia expert who led the U.S. delegation..//..
Just as important, experts believe that officials in Pyongyang
are more interested than ever in improving the economy by
reaching out. The government wants to establish four economic
zones and a legal framework to protect foreign investors in
industries such as mining..//..
With luck, the hope of prosperity may prove more effective
than threats in ending this crisis.
NK- China Trade in 2003
According to the statistics of China's Customs General Administration, the trade between North Korea and China set a yearly record by reaching US$1,023.5 million. This implies that the NK's dependence on China in foreign trade has been further deepened during the year. North Korea's exports to China increased 46% year-on-year to $395.6 million and imports 34.4% to $628 million. What's remarkable is that North Korea's export growth far surpassed its import growth, contributing to the reduction of trade deficit.
No change in Korea's credit rating likely
The North Korean nuclear issue and burgeoning domestic consumer
debt are the main reasons why the Moody's Investors Service credit
rating agency is not expected to upgrade Korea's sovereign credit rating -
- at least for the time being -- according to the Ministry of Finance and
Economy.
Assembly Ratifies Korea-Chile FTA_
The National Assembly on Monday passed a free trade agreement
between South Korea and Chile in a plenary session.
The opposition-controlled National Assembly passed the agreement 162
to 71, with one abstention
U.S. consulting firm visiting Gaeseong
Representatives of an American consulting firm, AECOM, are on a visit to the Gaeseong Industrial Complex in North Korea in connection with building projects.
[Kaesong]
US to Help Seoul's Kaesong Project
SEOUL (Yonhap) _ Three U.S. engineers will visit North Korea this week to help South Korea build a large-scale industrial complex in the communist country, promoters of the multibillion dollar project said Wednesday.
The two-day visit starting on Thursday will mark the first concrete move by South Korea's Hyundai Asan Corp. to build the complex at the North's boarder town of Kaesong in the first half of this year.
Austrian Piano Maker Nemetscheke to Produce Pianos in North Korea
11 February 2004
[Vienna, KOTRA]
J. Nemetschke, an Austrian piano maker, produces pianos in partnership with a North Korean enterprise and imports them back to Austria.
Founded in Vienna in 1896, J. Nemetschke is one of the oldest and most famed piano makers in Europe and enjoyed its heydays before the World War I. At that time, the company used to be the biggest piano maker in Europe with an annual capacity of over 1,000 units. But it suspended operation in the 1970s due to ever-rising production costs since the end of the war.
The re-operation of J Nemetschke, which has been prepared for since 2001, came to be realized in 2002 when its current owner Johann Nemetschke concluded the partnership agreement with Pyongyang Piano. The production of Nemetscheke's original model was commenced in 2003 after the license agreement that prescribes thorough advance preparation and processes of material section and production was formed and production of proto type and quality inspection were initially executed. At the moment, the first container load of the pianos has arrived in Austria.
Mr. Nemetscheke expressed his satisfaction at the business with a North Korean partner and the good workmanship of North Korean workers. The piano production in North Korea is smooth except frequent power failures and, in particular, gives the Austrian firm the price competitiveness enough to compete with world-class piano makers, according to Nemetscheke. His only dissatisfaction with the North Korean-made pianos is the imposition of a 4% duty by EU, the UK instruments are unfavorable compared to pianos imported from advanced countries, to which EU imposes no tariff.
Koreans Look to China, Seeing a Market and a Monster
JAMES BROOKE
Published: February 10, 2004
SEOUL, South Korea - After a century of looking east, first to Japan and then to the United States, Korean business leaders are now gazing west, to China. But it is a fascination tinged with fear.
In 2003, nearly half of South Korea's foreign investment went to China, and its exports to China jumped 50 percent. Winging west over the 250-mile-wide Yellow Sea, China-bound flights are filled with business executives bearing deals intended to ensure that China replaces the United States as South Korea's major economic partner.
..//..
As China's low-wage workers churn out millions of cars, computers and cellphones, its exports seem destined to look like South Korea's. As Korean companies move research and development units to China, surveys indicate that China's technological lag behind South Korea is three to five years, and shrinking.
One way out would be to marry South Korea's capital and technological expertise with North Korea's low-wage labor. In a first step, a South Korean industrial park is under construction north of here, just inside North Korea. The park, which might open in 2005, is to hold about 700 South Korean factories.
But in a Communist country where allowing people to fix bicycles for pay is considered a major economic reform, North Korea's inertia is an obstacle to the fast development of partnership projects. In addition, North Korea's nuclear weapons program leaves the nation exposed to economic sanctions by Japan, the European Union and the United States.
Five most promising North Korean industries
The five brightest spots of the North Korean economy are software, used machinery, mining and small- and big-ticket consumer goods, the former head of a multinational's Pyongyang office said
Abt placed his greatest emphasis on the software and multimedia industries in North Korea and referred to the animation film "Asterix and Obelix," which recently opened in French theaters.
Most of the work was done in North Korea, a fact well illustrating the abundant supply of top animation experts there, Abt said
North Korea and China Surpasses $1 Billion
SEOUL (Yonhap) - The trade volume between North Korea and China surpassed $1 billion in 2003, up 38.7 percent from the previous year when it stood at $738 million, South Korea's state-run trade agency said Monday
Fruit from
the Swallow's Nest
Taiwan Review
Publish Date: 01/01/2004
Story Type:ECONOMICS; AGRICULTURE
Byline: LEANNE KAO
PHOTOS BY CHANG SU-CHING
Agricultural products, once the mainstay
of Taiwan's economy, have withered in
importance in Taiwan's high-tech economy.
But fruit farmers are finding new ways
to compete in a global market by building
brand names and collectivizing their farms.
As early as 1984, those who made their living from agriculture started organizing study groups to enhance the members' farming techniques. It might at first seem more akin to farming strategies in mainland China or other Soviet-style economies, but the farmers found that by pooling their resources into cooperatives the value of their individual holdings could be increased.
As Taiwan prepared for entry into the WTO, the collective approach became a model for the government's effort to help Taiwan's farmers. The small size of farm holdings in Taiwan characterized Taiwan's farming industry and revealed the entrepreneurial spirit of the Taiwanese. The size of the farms, however, hindered competition with foreign fruit growers, who produced more fruit and could sell at lower prices.
North Korea seen as the next Asian Tiger
By GEOFFREY YORK
Saturday, January 3, 2004 - Page B1
BEIJING -- Even in the midst of a nuclear crisis that has frightened the world, Roger Barrett refuses to see North Korea as a member of the "axis of evil." He touts it, instead, as something better: the next Asian Tiger.
Potato Farming in DPRK
Potato tissue culturing factories built in different parts of the country are paying off and advanced methods have been introduced in potato farming.
What is an immediate task is to expand potato fields, increase the potato production considerably, process the products in an industrial way and boost the production of potato foodstuffs.
When the task is carried out, a great progress will be made in solving the food shortage in Korea.
N. Korea Expects Progress at Cabinet-Level Inter-Korean Talks
Despite the nuclear tension, both countries have largely kept intact inter-Korean exchanges and cooperation. However, South Korean officials have repeatedly warned that current inter-Korean economic cooperation projects could lose momentum if the nuclear dispute isn't resolved promptly through dialogue.
The communist country, for its part, has often accused the United States of trying to prevent the two Koreas from further developing relations. Major inter-Korean projects under way include the reconnection of severed inter-Korean rail lines and roads, a tourism venture at Mount Geumgang, a scenic resort on the North's east coast, and the construction of a major industrial complex for South Korean manufacturers in the North's border city of Kaesong.
N. Korea Progressing, U.S. Visitor Says
By Glenn Kessler, Washington Post Staff Writer, Friday, January 16, 2004; Page A14
An unofficial U.S. delegation to North Korea last week saw a vibrant and thriving capital, with the main market in Pyongyang selling clothes, vegetables, meat and electronics, according to a former State Department official who was part of the delegation.
"I was stunned by the activity," Charles L. Pritchard said at a briefing organized by the Brookings Institution. He said there were many vehicles on the street, compared with almost none a few years ago.
Pritchard said the visit indicated that change is occurring in one of the world's most closed societies, even during a crisis over its nuclear ambitions, and that North Korea is far from economic collapse.
American Group Says North Koreans Are Eager to Deal With West
On this visit to North Korea, his 10th since 1987, Dr. Lewis said he had seen evidence of real change in North Korea.
One sign, he said, was a bustling market several blocks long in Pyongyang that was divided into hundreds of privately run stalls, many of them full of meat and vegetables for sale. The visitors were told that the farmers were allowed to sell their goods after meeting production quotas.
In addition, Dr. Lewis said he and his colleagues had noticed brisk traffic in the capital and the use of cellular phones and the Internet. And they noted the availability of cable television in their hotel rooms.
Korean Currency Hits 5-Month Low Against Dollar North Korea's missile test firing triggered a selling spree of local currency, pushing the won to a five-month low against the dollar yesterday. [Rocketry] [Finance]
Outlook on North Korea's Foreign Economic Relations in 2003
Assessment of NK's Foreign Economic Activities Last Year
North Korea's Foreign Relations Wrapped up in Nuclear Issue
2002 was the year difficult relations between NK and the US and the recurrence of NK's nuclear program threw a dark shadow on NK's overall foreign relations. In 2000 and 2001, it looked as though NK was making a breakthrough as it entered into diplomatic relations with Western countries including EU members, but those achievements seem to have faded as soon as the nuclear issue broke out.
[Foreign trade] [Railways] [PYR][EU]
Agrarian Reform Law [Agriculture] March 5 is the 57th anniversary of the Law on Agrarian Reform in Korea. When Korea was liberated in August Juche 34 (1945), 80 percent of the country's population was peasants. In the northern half of the country the landlords, who accounted for 4 percent of all the farmhouses, possessed 58.2 percent of the arable land.... "Law on Agrarian Reform in North Korea" in March 1946
Seoul resumes work on DMZ railroad lines [Railways] [Connections] South Korea resumed work inside the Demilitarized Zone yesterday on cross-border railroads and highways parallelling them on the peninsula's east and west coasts. "Because of the winter weather, we stopped work on Dec. 21. "North Korea did not stop its work during the winter," the source added.
Drugs and forgery 'sustain North Korean economy'
{Matthew Engel} Monday January 20, 2003
[Drugs] [Counterfeiting][Black][Media]
The regime is shoring up what remains of its economy by racketeering, according to US officials quoted in the magazine US News and World Report.
They believe North Korea is producing 40 tonnes of opium a year, huge quantities of high-quality amphetamines and millions of dollars worth of "supernotes" - beautifully made counterfeit $100 bills
N.K. Makes All-Out Effort to Solve Food Shortage Problem {KOTRA) [Innovation] [Agriculture] [Military economy] North Korea has recently been striving to renovate and maintain relevant facilities for raising chickens, catfish, potatoes and ostriches, in a bid to resolve its chronic food shortage.
NK Delegates Go Home After Futile Economic Talks [Nuclear] [Exclusion] [SK NK Negotiations] [Spin] [Belligerence] [PYR] South Korean officials opted for the (Nuclear) issue as the first on the agenda, saying its prompt solution is a prerequisite to continued economic cooperation. Delegates from the North, however, reiterated their earlier position that the South should remain a third party about the issue.... From the beginning, few expected tangible results from the last meeting under the current government.
Overseas Chinese, the richest here [Sinuiju] [ewa] {Choi Wan-gyu} a vice director of
the Graduate School of North Korea Studies at Kyungnam University,
Seoul