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Kim Kwang-Jin Translated and Edited by Raymond Ha Gulag, Inc H R N K THE USE OF FORCED LABOR IN NORTH KOREA’S EXPORT INDUSTRIES KIM KWANG-JIN Translated and Edited by Raymond Ha GULAG, INC. THE USE OF FORCED LABOR IN NORTH KOREA’S EXPORT INDUSTRIES Kim Kwang-jin Nonresident fellow, Committee for Human Rights in North Korea (HRNK) Translators: Raymond Ha, Office Manager & Outreach Coordinator,HRNK Ha-Lim Daniel Choi, Research Intern, HRNK Grace Ha-Eun Lee, Research Intern, HRNK Copyright © 2016 Committee for Human Rights in North Korea Printed in the United States of America All rights reserved. No part of this publication may be re- produced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior permission of the Committee for Human Rights in North Korea, except in the case of brief quotations embodied in critical reviews and cer- tain other noncommercial uses permitted by copyright law. Committee for Human Rights in North Korea 1001 Connecticut Avenue, NW, Suite 435 Washington, DC 20036 P: (202) 499-7970 www.hrnk.org ISBN: 978-0-9856480-9-1 Library of Congress Control Number: 2016938493 BOARD OF DIRECTORS Gordon Flake (Co-Chair) Andrew Natsios (Co-Chair Emeritus) Chief Executive Officer, Perth USAsia Cen- Former Administrator, USAID tre, The University of Western Australia Director, Scowcroft Institute of Co-author, Paved with Good Intentions: International Affairs and Executive The NGO Experience in North Korea Professor, The Bush School of Government & Public Service, Katrina Lantos Swett (Co-Chair) Texas A&M University President and CEO, Lantos Foundation Author of The Great North Korean Famine for Human Rights and Justice Morton Abramowitz John Despres (Co-Vice-Chair) Senior Fellow, The Century Foundation Consultant on International Financial & Strategic Affairs Jerome Cohen Director, US-Asia Law Institute, Suzanne Scholte (Co-Vice-Chair) NYU Law School President, Defense Forum Foundation Adjunct Senior Fellow, Seoul Peace Prize Laureate Council on Foreign Relations Helen-Louise Hunter (Secretary) Lisa Colacurcio Attorney Advisor, Impact Investments Author, Kim II-Song’s North Korea Rabbi Abraham Cooper Kevin C. McCann (Treasurer) Associate Dean, Simon Wiesenthal General Counsel, StrataScale, Inc. Center, Los Angeles Counsel, SHI International Corp. Jack David Roberta Cohen (Co-Chair Emeritus) Senior Fellow, Hudson Institute Non-Resident Senior Fellow, Brookings Institution Paula Dobriansky Specializing in Humanitarian and Adjunct Senior Fellow, Belfer Center for Human Rights Issues Science and International Affairs, Ken- nedy School of Government, Harvard University Distinguished National Security Chair, U.S. Naval Academy Nicholas Eberstadt David Maxwell Henry Wendt Chair in Political Economy, Associate Director of the Center for American Enterprise Institute Security Studies and the Security Author of books on North Korea Studies Program, Georgetown University including The End of North Korea Colonel, U.S. Army (Ret.) Carl Gershman Marcus Noland President, National Endowment Executive Vice President and Director of for Democracy Studies, Peterson Institute for International Economics Stephen Kahng Author of books on North Korea President, Kahng Foundation including Avoiding the Apocalypse: the Future of the Two Koreas David Kim Coordinator, The Asia Foundation Jacqueline Pak Debra Liang-Fenton U.S. Institute of Peace Executive Director Former Executive Director, HRNK Greg Scarlatoiu Winston Lord Former Assistant Secretary for East Asia, Department of State Former Ambassador to China Former Director of Policy Planning Staff, Department of State Former President, Council on Foreign Relations Former Chairman, National Endowment for Democracy TABLE OF CONTENTS About the Committee for Human Rights in North Korea (HRNK) ................................II About the Author ...........................................................................................................III Acknowledgements ........................................................................................................V Foreword ........................................................................................................................VI Note on Trade Data ..................................................................................................... VIII Introduction .................................................................................................................... 1 1. Overview of the Mining Industry ................................................................................3 2. Organizational Structure ............................................................................................12 A. Mining as a Key Sector of the State Economy ...........................................12 B. Mining as an Economic Interest of Specialized Institutions ........................19 3. Management of Labor in the Mining Industry .........................................................20 A. Forced Labor as State Policy......................................................................20 B. North Korea’s Songbun System and Labor in the Mining Sector ............24 4. Other Aspects of Forced Labor in the Mining Industry ...........................................33 A. Kwan-li-so and Kyo-hwa-so ........................................................................33 B. Other Aspects of the Penal System...........................................................38 Conclusion .....................................................................................................................40 Bibliography ..................................................................................................................43 II Committee for Human Rights in North Korea ABOUT THE COMMITTEE FOR HUMAN RIGHTS IN NORTH KOREA (HRNK) HRNK is the leading U.S.-based biparti- classification system, and the abduction san, non-governmental organization in of foreign citizens. the field of North Korean human rights research and advocacy, tasked to focus HRNK was the first organization to international attention on human rights propose that the human rights situation abuses in that country. It is HRNK’s in North Korea be addressed by the UN mission to persistently remind policy- Security Council. HRNK was directly, makers, opinion leaders, and the general actively, and effectively involved in all public in the free world and beyond that stages of the process supporting the more than 20 million North Koreans work of the UN Commission of Inquiry need our attention. on North Korean human rights. Its reports have been cited numerous Since its establishment in October times in the report of the Commission 2001, HRNK has played an important of Inquiry, the reports of the UN Special intellectual leadership role in North Rapporteur on North Korean human Korean human rights issues by pub- rights, a report by the UN Office of the lishing twenty-seven major reports High Commissioner for Human Rights, (available at http://hrnk. org/publica- and several U.S. Department of State’s tions/hrnk-publications.php). Recent Democratic People’s Republic of Korea reports have addressed issues including Human Rights Reports. On several political prison camps, the dominant occasions, HRNK has been invited to role that Pyongyang plays in North provide expert testimony before the Korea’s political system, North Korea’s U.S. Congress. state sponsorship of terrorism, the role of illicit activities in the North Korean economy, the structure of the internal security apparatus, the songbun social ABOUT THE AUTHOR As non-resident fellow at the Committee for Human Rights in North Korea (HRNK), Kim Kwang-jin is an invaluable, experi- enced resource shedding light into the darkest corners of the North Korean regime‘s secret and illegal international financial operations. His revelations have saved insurance companies tens of millions of dollars and brought an end to an important method the corrupt regime purloined from foreign sources the funds it needed to maintain its internal oppression. In September 2003, Kim Kwang-jin and his family rushed to an airport in Southeast Asia to fly to freedom in Seoul, South Korea. Months earlier, Kim lived a privileged life working for the government’s overseas banking operations in Singapore. Then, Kim fell out of favor after he was suspected of leaking information about the regime to foreign nationals. Before being summoned back to North Korea to face severe punish- ment, Kim made the decision to defect with his family. During his banking career, Kim helped earn millions of dollars for what he calls North Korea’s “Royal Court Economy,” i.e., the enter- prises and often illegal schemes that financially supported the country’s totalitarian regime. Since arriving in South Korea, Kim has served as an analyst at the ROK Institute for National Security Strategy. A household name on TV and radio programs addressing North Korea, he has worked as a consultant for the ROK Unifica- tion Ministry as well as media organizations including KBS, MBC, and RFA. He is a standing member of the ROK National Unification Advisory Council (NUAC). His educational back- ground includes completion of Ph.D. coursework and an MBA in Finance and Insurance from Kookmin University (Seoul, 2014, 2012), a Master’s in Economics/IT of North Korea at the University of North Korean Studies (Seoul, 2008), and a BA in British Literature from Kim Il Sung University (Pyongyang, 1989). Working for the North Korean regime, Kim
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