North Korea Today

Research Institute for the North Korean Society

12th issue

Good Friends: Centre for Peace, Human Rights and Refugees

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Featured Article

The December rations were provided from the South Korean aid, and this was told at the official

Hoeryung, Ten Days Worth of Food Distribution are sold in December

In Hoeryung, the provincial governement of North Hamkyung made a public announcement

• food distributor (shop).
• Since there were

insufficient amount of rice to be distributed, some who have food coupons could not buy any rations. It could be seen as the state is trying to monopolise the rice market – although this is not a common situation throughout the country, since at Hamheung in the North Hamgyung province did not control the black market, but proceed with the PDS(Publc Distribution System).

• through
• a
• lecture on the new Public

Distribution(PDS) system will emerge from 16^th of December 2005 to the end of December. The same was promised in November, but the actual

• distribution did not take place.
• End of

December 2005, however, 10days worth of rice was distributed for people who have brought the ration tickets.
Hamheung, in October and November last year, the PDS resumed as per normal and grains (rice and maize) were all threshed and in normal ration. This is a comparable change from distributing unthreshed grains while the PDS was suspended. Some who have received were so moved that they shed tears thinking that the PDS is resuming as it was 15years ago. Hence, the price of rice in markets of Hamheung maintained low cost for awhile. But in December 2005, when the PDS was not given, the price of rice raised.
After the Economic Management Improvement Measures Policy in July 2002, the government was planning to provide rice at government price(44won ed.), but this time the rice is provided at lower rate than the market place. In December the price of rice was provided at 780won while in the black market, rice was sold at 850won.

Rice rations were given at normal rate, where previously, rations were taken off in the name of ‘Rice Saver’, ‘Rice Patriot’, hence, the workers would end up getting 560g when they should get 700g (ration per day), but this time, they were able to get the designated amount.
When rice is sold 800-900won per kilogram, the ‘go-between’ receives about 50-100won. Hence, the price of rice rises since they have to include the commission. There certainly is a haggling process, but the purchasers are at disadvantage since the demands are higher than the supply and usually to gather the amount of rice required to sell, they would need to visit five to six houses.

Aftereffect of Rice Market Suspension

After the suspension of selling rice on the market, the control of rice markets differ depending on the regions and even in the same regions control is differentiated depending on the size of the market. In the case of the Sunam Market in Chungjin, North Hamgyung province the local government is closely contolled, whereas small markets in the vicinity are not monitored at all. In North Hamgyung, including the Ranam Market, and markets in Hamheung, Anju, Sookchun, Heichun, Bookchang, Daegwan and Sinuiju are operating free from any control from the authority. Villages on the border areas, however, Musan, Hoeryung, Onsung there are tighter control and numerous public lectures were held to educate the public that private selling of rice is prohibited. There are still people who sell rice in markets of these areas; they only retract when there are patrols about.
It is not easy to be a regular purchaser since the sellers are after higher price, and do not give at same amount and often out of stock. They then have to contact the ‘go-between’ to find another farmhouse to buy rice. Rice is then sold to another region that is less controlled – at a higher price – which would raise the rice price of the region. Hence, this ‘retailing’ system results irregularity in the retail system depending on the region, for instance, in Chungjin, rice from the Sunam market is 100won to 200won more expensive than in Ranam Market.

Getting Commission for introducing the rice sellers

Compatibility of rice selling depends on how fast and how much one could secure rice for sale. Also the finding out when the Department of Food Policy will provide PDS in the area is another significant variable, since after the PDS, the price rice drops dramatically so they would need to sell bofore it happens. Information is always a crucial factor in any business, but in rice selling business, this is particularly important. Most sizable rice sellers are in good terms with the local Department of Food Policy.
Since the official ban of the rice on the market, in some areas, the rice is sold at private homes. Hence, for those who purchase rice directly from farms and sell in small amount in Doeguri: ᢲᄊ Ṇi¹ sellers from another region would not know where the rice is sold. This situation created a ‘go-between’ who introduces farm houses for the Doeguri sellers.

Meanwhile, on the recently resumed PDS, most are pessimistic about whether the PDS will suceed. Even the party officials say that the nation-wide

¹ Grain ‘Doe-gu-ri (ᢲᄊṆ)’ trading is when merchants would directly go to farms and buy the rice without the wholesalers. Afterwards, the customers buy in small amount from the Doe-gu-ri sellers.

PDS will not be possible only with the North Korean produced rice. The cereal production in 2005 is said to be 4,500,000MT, but it is likely to have inflated the 2005 cereal production. Realistically, the production amount would be estimated at 3,000,000 – 3,500,000MT and say the PDS has already proven failure under their breath. That it will also be good to buy rice while it is still at a lower price. symtoms for the cows until January 17 in Rasun, but on the January 19, 28 cows have died.

The North Korean government is reponding the

• epidemic quite promptly.
• In Hoeryung the

symtoms showed first at the Wonsanri on January 10. A official dealing with MCD said that the epidemic has come from China and about 90 cows have been slaughtered. All cows when even a similar symptom showed have been slaughtered then buried. Pits are dug deep in order to prevent any recurring incidences since the virus could persist upto ten years. The locals understand the MCD as the likes of the ‘Bird Flu’. The epidemic is highly contagious that it is even spreading through air – it is contractable to people who are managing the epidemic. However, apart from burying cows, there are no initiatives for any

Updates from the Border area

Introduction of Mad Cow Diseases in North Hamgyung – January 2006

The Mad Cow disease are spreading on the border areas like Hoeryung, Onsung, Saebyul, where a number of cows in this area are showing symtoms such as splitting toe nails, swelling between the toes and tongues will not roll back into mouths

• and dribble. Locals call it the ‘Cow Disease’.
• preventative measures.
• Only Hoeryung has

banned foreigners and people from other region to coming in. Until January 19, the border is not completely sealed, but has been declared to be sealed.
It seems the Mad Cow Disease(MCD) on the boreder area in Xiaohelong China - have now spread over the border to the villages in North

• Hamgyung.
• The MCD began in early
• In the city of Rasun, they are blocking any

• transport or persons to enter, particularly any one
• December from the town of Sanhe in China and

now seems to have stablised, but Onsung and Sambong are still spreading. In China, the vaccine costs 300yuan per injection, the vaccinated cows are well while unvaccinated cows become vulnerable and when they catch the disease, the cow cannot eat and die soon afterwards. In Sanhe 11 cows have died because of MCD.

• from Chungjin is completely blocked.
• In

January 21, the rate of infection seems to be decending.

Buried Cows are Gone

On January 23, 40 cows that contracted MCD were buried in Ingyeri, a surburb in Hoeryung, after the burial, and two cow were missing. The local government is running a campaign visiting each village to announce when MCD contracted beef were consumed; it will be fatal for
On North Korean end, the epidemic is spreading fast from Onsung, Saebyul then to Hoeryung and presently Rasun is suffering. There were no children under five. Despite the effort, there still were people who dig out MCD cows for consumption and put on the market. obtained houses when their parents are deceased. The usual tenants are peddlers and smugglers. Rental fees are paid on the monthly bases, but those who are professionally working on the border, may pay in advance for six months. The police patrol would regularly check the lodging in the villages, but would not check on the supposedly unoccupied houses. Even when they are being checked, the owners of houses are in good relationship with the police.
In March 2005, the bird flu was found at Hadang Chicken processing factory farm in Pyongyang. When the farm closed and chickens were buried, many villagers stole buried chickens. This is largely due to lack of recognition of how fatal the disease could be, and since chicken or beef is a luxurious food item that ordinary North Koreans

• could not get normally.
• For those who have to

worry whether they could have next meal, they are more concerned about whether they could eat or sell it on the market rather than contracting
It is known that almost 5% of the people in Musan are letting their houses. The numbers of houses are known to be about 13 houses, but if other less known houses are included, there are more. Saebyul County is known as the most

• fatal disease.
• Prevention and immediate

response to the situation is crucial, but this phenomenon clearly shows how foodstuff is insecure for ordinary North Koreans.

• actively renting out town.
• Previously the

peddlers and smuglers were working through Namyang and Onsung, but now they are focusing on Saebyul. It is because in those two towns are more hostile when they see one from other towns and they are charged higher prices when using inns. In addition, they are often asked by the town’s people and what they do. And report to the police, thus, one has be very careful.
Rent houses are Another Trend in Border area Another new development in the North Hamgyung border area is that individuals let there houses to be rented out. In Chungjin, for instance, a monthly rent fee is 3000won whereas, Musan, Hoeryung and Saebyul are more expensive. Fees are high since professional smugglers are known to be usual tenants. 39农 (12pyung;㡣) rented houses cost around
Even on cases where their border crossing was at Musan or Namyang, they tend to stay and work

• the connections from Saebyul.
• Since the

10,000won. apartments.

• There are more houses than
• commission for crossing the river costs half the

amount that of Namyang and Musan. Meanwhile, a new rising problem after the food control on the market, five to six North Koreans ‘gang-up’ to rob the Chinese home on the other side of the border.
For those households who let houses have more than one house in their posession. In Musan and Saebyul, many own two houses and some even own upto seven houses. Usually they have

Toothpaste
(180g)

• 70
• 75
• 68

Economic Updates

Fig.1.Price North Hamgyung Province December, 2005 to January, 2006

(Unit : North Korean Won)

Tooth brush Coals
50 85
55 90
48 96
Units (Kg)
Chungjin Dec.
Rajin Jan. 2006 800
Sineuiju Jan.
Onsung Jan.

• Diesel
• 250 -

280 25
300 - 350 35
390
(1LT)
2005 850-
2006 850
2006 800

• Asprin
• 25

Nth Korean Rice
(1 tablet) Penisilin
(1 injection) Hair cut
900

• 150
• 180
• 180

Sth Korean Rice

• 850
• 875
• 840

• 40
• 40

Chinese Rice
Maize
870 460
700 500
790 590 - 600
750 580

• Permed Hair
• 100
• 100

Increasing of Floating Population in Taechun County - Increasing Number of Inns

Yellow Beans
(Tofu)
750 830

• 750
• 700
• 700

Wheat Flour
Pork
850
3,100
450
850
3,200
480
820
3,100
470

Since there are so many floating populations in Taechun County, North Pyongan Province, about 10% of the county’s population is running ‘inn-like’ business, called Dae-gi-suk-bak:រዊ⚳ ₯, where one could stay overnight or a few hours to take rest. Even the houses does not run such business, when paid, it is likely to provide accomodation. 80% of the time the fees for providing the accomodation is rice or maize rather than cash so that people could sell this straight on

Sea vegetable Table salt Sugar

• 480
• 300
• 390

1,600 1,600
700
1,850 1,600
600
1,800

• MSG
• 1,700

2,900
Chilli paste Soyabean sauce (1LT) Candies (Chinese) Spirits
670

• 290
• 280
• 250

• 2,300
• 2,500

360 160 85
2,340
280 170 85

• the market.
• In other areas, the fees for

accomodation is about 700won in cash, but in Taechun the price about double the ordinary price – about 2kg of rice. One customer staying for a night could provide a weekly living for a

350 - 450
240 - 300 150
(1LT) Light-globe
(25W)

• household.n
• Since
• the

“Daegisukbak”

Laundry Soap
(180g)
80 60

accomodation is only providing bed and no food, this is good source of income.

Facial Soap
(90g)

• 65
• 60

• While in Soonchun, there are “Daegisukbak”
• the PDS is given once in every 15days worker in

rear (secondary) would get PDS once every 2-3months. accomodations that provide bed and three meals a

• day, and costs 1000won per night.
• Food is

including 110g of rice(foreign:long-grain rice – lowest grade in Nth Korea) mixed with 50% of maize, Sea vegetable soup, radish pickle and cooked chilli.

In comparison, Unsan County does not have as many “Daegisukbak” accomodations. Civillian homes in other towns would try to attract more customers to earn extra income, but in Unsan many homes have gold in their house, hence, they are very cautious to strangers.

When people are from outside of the town, they would have to stay in Unsan Inn run by the Unsan Food and Accomodation Management Deparment. This inn provides bed and three meals for 250won per day. Food is said to be 150g of maize rice (in actuality, it seems 110g) with just radish pickle. Even when the food is not consumed, one would have to pay 250won since it is a part of the package. After seven each night, there is no food. Four people share a room.

Fig.2 Map of Towns Mentioned in this issue of the North Korea Today

Bookchang Wine; famous for clear water:

• produces 300MT
• Unsan Tools Factory: 2/3 of factory

stopped operation

Annual production amount from the Winery in Bookchang is around 300MT. The ingredients are usually maize and barley. Here, they do not provide PDS, instead, it is up to the workplace to work out the foodstuff. Hence, the workplace has divided workers into groups and provide certificate for them to obtain food on their own. 60% of workers are selling barley and maize. After satisfying the yearly production target,
Unsan Tools Factory makes basic tools such as spanners, long-nose pinchers, screw drivers,

• multipurpose knives.
• Originally there were

11,000 workers working in the factory, but now, there are only about 7,000-8,000 workers remaining and the 2/3of the factory stopped operation. Only two parts: pincher and spanner producing line is working and for those who work, profits made afterwards are distributed among the workers. There are no regular distribution, but provides monthly distribution to 54workers so they could provide their families. good relationship with the railway authorities to get travel passes for their customers and gets a certain fee.

Also when there are no vacancies in their accomodation (normal occupancy is about 5-6 persons) they would refer to another “Daegisukbak” accomodation and charge 50won per head for commission. It is obvious that the ‘service industry’ is expanding as the market economic concept is sinking in.
While Dukchun Hydro-electric power plant has stopped its operation, Bookchang Thermal power plant is still operating as the largest (1,600,000KW) power plant in North Korea.

Variety of Business available on the Dongheungsan Market

Dongheungsan Market and Hamju Market have merged two years ago in Hamheung, North Hamgyung. There is a new border between Hamju and Hamheung and the Market is now called Dongheungsan, as it was originally called, but the Hamju people call the same market as Hamju Market. Dongheungsan Market sells rice out in the open. There are approximately 500 people selling variety of goods.

Society

“It’s a World where Kitchen Fire Eats White Rice”

People in Gimchack, North Hamgyung use firewood for winter heating while using coal from Ilshin Mine in Gilju County are used in Kitchen since coals are more expensive. A kilogram of Coal costs 100won and with 10kg of coals(midium sized backet), it could cook rice twice some homes use small manual stove to save some coals rather than the kitchen fire:

A-gung-eed⧞ማⰎ². Small stoves are weak, but

with 10kg of coal, it could cook rice at least ten times.
Appearent changes are taking place as the markets develop and now show clear differentiation. Previously peddlers would directly go to the railway station and send parcels on their own, but now the roles have broke down to a smaller scale from persons who deliever goods to the railway station and another who load goods to the cargo.
Considering rice in Gimchack is sold at 1000won per kilogram, if one was to cook their rice in kitchen fire twice, it is equal to throwing a kilogram of rice away. Hence, people joke with a sigh that, ‘it’s a world kitchen fire eats white rice’.

• The
• owners
• who
• run

“Daegisukbak”

accomodations often work as a ‘go-between’ as an agent to get a travel passes for their customers. Accomodations that are closer from the transportation are most popular. So that the owners of these accomodations try to establish a

2

A-gung-ee⧞ማⰎ: Kitchen Fireplace traditionallyusedin Korean homes –it is used to heat rooms while cook food.

Full of Military Mechanics at the Taechun County in North Pyongan

There are on-going constructions and repairing for hydro-electric power plant in Taechun County so there are many military mechanics from

• outside.
• Presently a brigade (about 5,000

soldiers) is put to the construction site. No.1 and 2plants have completed construction but are in repairing, since for 7 to 8years, the plants have

• not properly operated.
• The labourers are from

the No. 10 Construction Workplace – after the workplace dismissal, they are put to Military

Fig.3. Hydro-Electric Power Plant (upper) and the Boarding Houses (lower)

• Mechanic Brigade.
• The headquater of the

(Satelite photograph from the Google Earth 2006)

brigade was in Galhyunri, Heechunshi in Jagang Province, but have now moved to Taechun. Thus, the 40% of the total number of brigade is put to the construction of the Taechun hydro-power plant and the rest 60% is put to other projects in the vicinity such as goldmines in the Unsan County, North Pyongan Province or other projects regarding foreign trade.

Military Mechanic in the Hyangsan County is the ‘Puppet Army’?

Both Unsan County and the Hyangsan County have many military mechanics. According to locals, their reputation is not so good – some even call them the Puppet Army. They have bad reputation of being violent and locals are
About a half of the brigade resides on the site in boarding houses. On the first row, there are barber shop, bathrooms, cafeteria. The rest are the residential area, for each cabin, 1or 2divisions (8 persons in a division) so it means that there are

• complaing they are putting locals in danger.
• A

soldier in the military mechanics attempted to forcibly stop the Servi-Car and when the driver bypassed the soldier, he then ran after the driver and severely beaten the driver. After such incidents locals fear the military mechanics so

• about 16 persons living in one room.
• There are

bunkbeds on oneside and closets are right above when lying on the bed. People who live in these facilities are single males in their 30s and 40s. Engineers and foremans who do not live on the boarding houses usually live with their family and

• they may get easy free ride.
• Seeing this

phemomenon, some of the locals disguise as military mechanics (unforms, boots and belts are

• readily available from markets)
• they live in groups of 7 to 8.

receive regular PDS.
Labours here the Bookjinri, Unsan County goldmine to dig gold. Also, the National Security and the Central Government, foreign dollar earners along with the military authority parties from all parts of the country visit this place for gold production and trade. Farmlands are frequently violated when digging gold, therefore quarrels occur time to time between the farmers.