[“Good Friends” aims to help the North Korean people from
a humanistic point of view and publishes “North Korea
Today” describing the way the North Korean people live as accurately as
possible. We at Good Friends also hope to be a bridge between the North Korean
people and the world.]
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“Furnish Party Funds to Buy Food”
New Leadership Is Modifying Regulations Regarding Trade
Unprofitable Factories and Public Enterprises
Undergoing Major Restructuring
Delay in Second Rocket Launch under
Chinese and Russian Pressure
Students Exempt from Farming
Mobilization
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“Furnish Party Funds to Buy Food”
Kim Jong-un, the First Secretary of the
Workers’ Party of Korea, instructed the Ministry of Foreign Trade to furnish
party funds to buy food actively. That was due to the decision that emergency
food must be supplied in rural areas to make sure there is no setback in
farming. An official in the Central Party says, “When (the First Secretary Kim
Jong-un) asked a financial management officer why they could not import food in
such a dire domestic food situation, he answered that they are experiencing
difficulties in purchasing food because they do not have funds to pay for it.
Then Kim Jong-un directly instructed him to furnish party funds to purchase
food by saying, ‘who would give us goods if we are not paying for it? Make a
prompt payment’.” Therefore, the Central Party furnished party funds to the
overseas trade officers and assigned the task of procuring 100 tons of food per
person. It instructed them to accomplish the task no matter what by the end of
May. It also pressured every unit, organization, public enterprise and ministry
of the cabinet to make a prompt payment through the People's Living Teams who
have been sent abroad and to purchase food and daily necessities as soon as
possible.
New
Leadership Is Modifying Regulations Regarding Trade
Since April 15, a series of instructions
regarding the economy has been issued, one after the other, under the name of
Kim Jong-un, the First Secretary. Since the end of last year, the North Korean
authorities have been modifying its economic legal principles including labor
laws regarding foreign invested companies. Accordingly, they have consulted
international practices in managing economic trade areas and agreed to conform
to the International Arbitration Commission’s rules regarding disputes. The Central
Party also plans to take the initiative in attracting foreign investments for
fear that they may end up being dependent upon the Chinese economy. Recently,
it is also known that they are amending the rules and regulations regarding
trade. “In order to eliminate the circumstances in which trade fails because
the principal is not repaid in time with respect to trade between international
traders, we are attempting to amend the rules and regulations of trade. We plan
to establish a professional body to handle the situation in the event of trade
disputes and conduct an integrated management within it,” says an official in
the Central Party.
Unprofitable Factories and Public
Enterprises Undergoing Major Restructuring
The North Korean government will
restructure factories and firms that are poorly-run and have not been
profitable for a long time. Firms with foreign investment, that are
unprofitable, will be included. The government will return money to foreign investors
in factories and firms that are to be restructured. A Central Party official
said, “The restructuring is to promote the nation’s economic development. If
the government determines a restructuring is infeasible, it will either merge
the failing organization or change the company’s product line(s). The goal is
to pick firms and factories best able to survive and to concentrate efforts on
improving them.”
Mines, a key source of
foreign exchange revenue, are included. The government decided on restructuring
because some powerful government entities – e.g., security departments, law
enforcement agencies, Prosecutor’s office and Armed Forces – had ownership but,
in its judgement, failed to make a tangible contribution to the economy as they
attracted uncoordinated investments for foreign exchange revenue. One Central
Party official opines that foreign investment might have helped the upper
class, but it had not generated much profit for the nation. “The production
environment deteriorates because investment, that should improve output, is
mis-used by corrupt officials. Workers find poor shop-floor conditions. As a
result, production suffers. With few exceptions, even mines are now banned from
exporting. The government will compensate foreign investors and take full
control of the selected firms and factories, to allow for more systematic
development,” the official added.
Delay in Second Rocket Launch under
Chinese and Russian Pressure
The second launch of the rocket which
carries Gwangmyongsong 3 is ready, but the launch is currently being delayed.
An official in the Central Party reported that “We are just waiting for the
order to launch it, but we don’t know when it will be launched given that we
are under the pressure from China and Russia. We are thoroughly reviewing every
aspect because we will be internationally shamed if it fails again. It all
depends upon Comrade Kim Jung-un’s determination. The rocket will definitely
launch, but it is likely we will report it to China.” That infers that North
Korea is taking great care in the relationship with China that recently seemed
to be distant. Despite their will for self-dependence, in reality, cooperating
with China is required more than ever before in order to keep their regime.
A Central
Party official said that “Our republic will face more serious difficulties if
China doesn’t cooperate with us. The (Central) Party knows it. It has sent
instructions to all agencies, enterprises, and units to abstain from any
comment that could spark a dispute with China.” He also added that China has
been pressuring North Korea not to make a disturbance about the issue of defectors
at the border, and also not to conduct a nuclear test.
Students Exempt from Farming
Mobilization
Students were for the first time excluded from the rural mobilization,
began in May. First Secretary Kim Jong-un ordered, “Let students concentrate on
their studies.” In Pyongyang, elementary, junior high school and college
students were all exempt. To compensate
the lack of hands for plowing, harvesting and planting, the People's Army soldiers
were instead mobilized.
Parents praised the decision saying, “The
money needed for the rural mobilization of children had been a burden every
year and parents suffered. This year, our children can concentrate on studying
in school. In the past, it was impossible, so we are grateful to Comrade Kim
Jong-un for his decision.”
Non-parent residents often say to each
other: “The expectation (for the government) is rising higher and higher as we've
seen favorable policies implemented recently. We can soon end the sufferings and
afford to live well.”
In rural areas students are still being
mobilized due to the lack of extra hands. Units, agencies, and public enterprises
are also sent into rural mobilization under the slogan, “All for rural
community.” The Central Party and the cabinet participate as well taking turns
by dividing 2-3 shifts to avoid impediments to their business operation. Markets
are also making adjustments according to their local circumstances by opening
at 2 pm or at 6 pm, instead of the regular hour at 4 pm. The entire sectors
supply manpower, resources, and materials (to agriculture) sufficiently upholding
the supreme order that the food issue needs 
to
be resolved with no excuse this year by farming successfully.
to
be resolved with no excuse this year by farming successfully. 
