North Korea Today No. 321 Full Version January 2010

[“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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[Hot Topics]
Note: The Hot Topics of No. 321 were published ahead of time as a separate edition.

[Food]
Note: Food section of No. 321 was published ahead of time as a separate edition.

[Economy]
Prices Rise in the Hamgyong Province After Ban on Use of Foreign Currency
Shortage of Smaller Bills Makes Business Difficult
Hamheung Woodworking Factory Demands Constant Labor from Starving Workers

[Politics]
Forty Arrested for Burning Old Currency in the North Hamgyong Province
Hamheung City Released Public Statement on the Results of Drug Crackdown
Resident Registry Center Transferred from Safety Agency to Security Department
Law officials Conduct Investigation on Families and Relatives who Fled the Country

[Society]
Police Returned Stolen Objects to Owners after Receiving Payment
A 75-year-old Woman Works at the Construction Site on Behalf of Her Son

[Women/Children/Education]
Students Born in 1993 Face Biggest Obstacles

[Accidents]
Fisheries Management Office in South Hamgyong Province Reported 40 Casualties Out at Sea in 2009

[Editorial]
North Korea Must Have a Plan in Place to Supply Food and Essential Goods
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[Economy]
Prices Rise in the Hamgyong Province After Ban on Use of Foreign Currency
Ever since the use of foreign currency has been forbidden and the use of exchange voucher mandated, prices have been rising in the North and South Hamgyong Provinces because goods sold in foreign shops are no longer available. People do not exchange large sums of foreign currency because it reveals how much foreign currency an individual or companies possess. As a result, there has been a decrease in the number of sellers who purchased goods in foreign currency shops with exchange voucher to sell them in the northern region. As goods become scarce in the northern region, prices are rising. For example, on December 31, a pack of Cat Cigarette doubled its price from 25 won to 50 won, and the price of sugar rose from 70 won to 100 won. People are saying, “The government’s financial incentives are not sufficient to help us, and the decrease in the value of money worsened our living conditions.” Others are saying, “Prices rose since the ban on the use of foreign currency. That has made our lives more difficult.”

Shortage of Smaller Bills Makes Business Difficult
Markets in major cities and state-owned national convenience store chain are suffering from a shortage of smaller new money bills. Currently, there is a significant shortage on 5 won, 10 won, and 50 won bills. The shortage of smaller bills is making it difficult for merchants to sell goods because they are unable to give change to buyers. Food processing service centers and bicycle storage centers are giving gum or candy to customers instead of change.

Hamheung Woodworking Factory Demands Constant Labor from Starving Workers
Laborers at the woodworking factory in Hamheung City, South Hamgyong Province are known to have sacrificed a great deal during the 100-Day Battle, which began after last year’s 150-Day Battle. In the beginning of the 100-Day Battle, the economic management officers, including managers of public enterprises and party secretaries, encouraged greater effort with the stated goal of achieving the modernization and reconstruction of industrial technologies. The encouragement was in accordance with the party’s intentions. However, problems with the food rations for laborers have led to difficulties for the managers who try to increase their employees’ will to work. A slogan was posted in front of the Hamheung factory’s entrance that says, “Toward a Modernized Factory According to the Demand of the Coming Age,” but they have proven to be empty words. Managers were supposed to prepare construction materials and funds for the reconstruction work, but it was discovered that they have not completed this necessary work. Therefore, laborers endeavored to complete the reconstruction work with the profit made by selling logs. They sold a board for 600 won, an engraving for 600 won, and door frame materials (thick plate and white quartz), for 3,000 won each in old currency. The customers for the timber were ordinary people, institutions, and public enterprises. In addition, the factory collected funds for basic construction work by making doorframes and doors needed for the construction of private houses. In order to gather construction materials and earn enough money to begin work, the laborers were mobilized and moved into the mountains, where they logged for three months. The laborers were forced to labor continuously, even though they did not receive their rations and had no guarantee that they would later receive food or firewood. Some laborers have asked to have a leave of absence, if only for a few days to tend their small patches of fields because they and their families had no food. Any requests to leave the logging camp were rejected. Naturally, attendance rates among laborers decreased. “The officers are well provided for, so they do not understand the condition of the suffering laborers who have nothing to eat,” complained laborers. Due to the endurance and sacrifice of these laborers, they were just able to finish the basic reconstruction work on October 29th of 2009.

[Politics]
Forty Arrested for Burning Old Currency in the North Hamgyong Province
After the November 30 currency revaluation, the search continues for those who dump or burn the old currency. There have been at least 40 cases since December. The Province Police Department stated, “Burning or throwing out old currency instead of returning to the bank is treason,” stressing those caught will be severely punished.

Hamheung City Released Public Statement on the Results of Drug Crackdown
On November 28th, Hamheung City, South Hamgyong Province publicized the latest results of the drug crackdown. The City launched the campaign since last September. Party officials, including four officials belonging to the Provincial Party, three officials from the city party, two police officers from the Sungchun region, two prosecutors from the Province, and one party official from the Sapo region, who have accepted bribes from drug smugglers were the main targets of the recent crackdown. The police authorities condemned the perpetrators and made their names and ranks public before relieving them of their posts and indicting them.

In addition to these officials, civilians were also arrested for having committed drug-related crimes. On December 13th, the city police presided over an open trial at the Chupyung market one hour before the marketplace opened for business with the police chief announcing the charges in each indictment and making open statements that the Party would sweep out crime.

People grumbled about the unfairness of only subjecting civilians to the humiliation with an open trial. The officials who have been charged for the same crimes did not have to stand an open trial as did the civilians at the Chupyung market.

Resident Registry Center Transferred from Safety Agency to Security Department
Starting January 3, resident registry center is being transferred from the safety agency to the national security department. Following this, the police station’s resident registry department from all cities and counties are being shifted to the security department. The security department is making preparations to take over the works from residential identification center. They are also preparing for safeguard measures for possible bribery incidents involving officials. In the meantime, many residents fled to China and South Korea due to food crisis. The safety agency had difficulties managing statistics of resident registry due to high number of missing person from the Arduous March to present. It was common for people to bribe police officers who were in charge of resident registry records to prevent any disadvantage that might occur during family background check prior to being appointed as an official. If they had any family members who fled the country, they often bribe officials and change the missing person status to death.

Such corruption among officials not only ended here but led to incidents like espionage incident at Yusun Hospital’s primary party secretary in Hoeryong city; therefore, the central party decided to transfer resident registry responsibility from the police station to the security department to strictly manage the system.

Law officials Conduct Investigation on Families and Relatives who Fled the Country
There soon will be a national inspection campaign and follow-up campaign on all security department, safety agency and police department to check whether any family members or relatives fled to China or South Korea. City Party level inspection was completed earlier and this one is identification inquire inspection to investigate whether they have border-crossers within close relatives. Any officials who were not punished or hid the fact their family member fled the country were immediately dismissed from the office. Also, they were banished to labor intensified coal miners or factories with most difficult living condition. The central party ordered resident identification centers to change their status to 1st level social labor. Things will become more difficult for officials with families or relatives who fled the country in the future.

[Society]
Police Returned Stolen Objects to Owners after Receiving Payment
At the Chungjin Preservation Center of Northern Hamgyong Province, possessions stolen during the 100-Day Battle were being returned as of December 8th. Officers have found 20 bicycles, 8 TV’s, 2 motorcycles, and 5 sacks of clothes upon capturing four thieves. Village residents had to pay in order to receive their own things back. These payments supposedly paid for the officers' gas and other traveling costs while they were searching for the thieves. 500 won in new currency was paid for a bicycle, 400 won for a TV, and 20 won per article of clothing. The villagers claimed that travelling costs could not have exceeded 100 won to find one bicycle meaning that the officers were still making a profit of 400 won. They criticized the officers for taking advantage of citizens for their business-centered interests.

A 75-year-old Woman Works at the Construction Site on Behalf of Her Son
Hoeryong Food District construction site of North Hamgyong Province temporarily ceased the construction work because of severe cold. The work went on until last November although the workers had to endure cold and hunger. Some of the workers are from the Special Labor Brigade of the Party but most workers are from factories or companies on once-every-three-month rotation basis. As few of the Special Labor Brigade members volunteer to work, there is always shortage of workforce. When a person is sick and cannot come to work, his coworkers have to cover the missing manpower, making their work harder. The psychological confrontation between the workers and non-workers is very serious and often leads to verbal fights at the self-criticism meeting. Over 80% of workers are from poor families that lack food and are under severe economic hardship. Kim, Guen-sub (alias) of the 2nd platoon of the Special Labor Brigade requested a two-day leave in order to borrow some food from his relatives because he did not have any food in his house. However, he had not reported back to work, and the Special Labor Brigade sent a member to (Kim's) house to bring him back but they failed. In his house, his 75-year-old mother lived alone. Officials of the Special Labor Brigade threatened the mother saying that her son missed the work more than 10 days, causing a lot of disruption of the construction work, so they would send him to the Labor Discipline Center when he comes back. They said if his brothers or relative can work for him, he can be exempted from the punishment. Because she worried about her son, this old woman went to work for her son. She had worked for the Special Labor Brigade for 25 days and young people admired her. She worked as hard as young people and was not lazy, so people were moved by her sincere attitudes toward hard work. However, officials seemed to be indifferent to this poor old woman and were criticized by the workers. Han, Mahn-gil (alias), working with the old woman, lamented that “It is impossible to expect any morality from these officials. Even if her son did not report back to work, how could they put this old lady who is older than their own mother to work? It's such a dirty world!" This is not a rare case as more workers are absent from construction site, officials are increasingly requesting their families or relatives to work instead. When husbands miss the work, their wives are to cover for them while sons do that for their fathers. Residents of Hoeryong sneered at this situation and said, “You can see this situation only in North Korea. The government controls and puts replacement workers for the missing workforce and it is reality of North Korea pursuing Strong and Prosperous Nation and Military First Policy.”

[Women/Children/Education]
Students Born in 1993 Face Biggest Obstacles
On January 5th, the college preparation test was held in Sinuiju, North Pyongan Province. Most of the students born in 1993 have not gone to serve military service after graduation and enrolled in colleges. However, the parents of such students and the student describe themselves as the most unlucky class, since medical and educational areas have no room for new students. After visiting her daughter’s school a few days before the test, Mirye Kim (alias) sighed and worried about her daughter. “The principal said that colleges do not accept applications for the new students. I pity my daughter, who desperately wanted to get into medical school.” Even though Province People’s Hospital in North Pyongan Province only has a need for 600 doctors and nurses, there are more than 650 who work at the institution. Similarly, about 15 of the 40 faculty members of a middle school in the city are not receiving wages and so work for nothing.

[Accidents]
Fisheries Management Office in South Hamgyong Province Reported 40 Casualties Out at Sea in 2009
In South Hamgyong Province, the Department of Labor’s Fisheries Management Office reported that 40 laborers have died or have gotten lost out at sea between the months of January and October last year. According to the announcement on November 7, 27 fishery laborers died from accidents and their corpses were identified, while the remaining 13 were missing due to an unidentified cause.

[Editorial]
North Korea Must Have a Plan in Place to Supply Food and Essential Goods
The North Korean government was very clear that the currency redenomination was carried out to “stabilize and improve people’s lives” and “reinforce economy management system and order.” Further, it stated that the currency revaluation was designed to buttress the material foundation upon which to construct a Strong and Prosperous Nation in 2012. We see the purpose of the revaluation as an attempt to lessen the gap between the rich and poor, recover central control over the economy, and reabsorb the monies held by individuals into the State budget. Although not much time has passed since the revaluation was carried out, we see many things in North Korea that we haven’t seen before.

The revaluation came about as a great shock to the traders in the markets who were pushed to despair when they suddenly found themselves holding worthless pieces of paper. At the same time, the majority of farmers and laborers – as well as others in the lower economic class – suddenly found themselves with enough money which they spent with unbridled gusto buying up market goods that they couldn’t afford before. As such, things were selling at a brisk pace in the markets.

As far as North Korea’s stated goal to stabilize the economic order, huge risks lie in wait. Already, prices for most items have doubled or tripled. Further, we see rice prices varying according to time and location; official government price is 22 won per 1 kg, while the state-run stores are selling rice at 44 won and market prices are fluctuating at around 50 won per kg and up. Also, the wholesale increase of salaries for laborers and farmers, despite enhancing their purchasing power, could lead to inflation in short order. We are already hearing complaints by select groups that the revaluation has already lost its effect and everything has gone back to “square one” because the purchasing power of the new currency can’t keep up with price inflation. Some experts are using these cases to conclude that the revaluation effort has already failed.

However, the key to the matter lies not in increasing purchasing power for the people but in providing them with enough food and essential goods. If the North Korean government really wants to rid itself of the current economic system in which the national economy relies parasitically on the market system and reestablish a socialist supply system, then it has to come up with a plan to provide for the people’s needs. Otherwise, the effect of the recent revaluation cannot last. If the State cannot supply the needed goods, then it should just go ahead and legalize the markets altogether so that the people have a way to ensure their own survival. If this currency revaluation were to fail, the people will inevitably undergo a severe hardship and disappointment.

In its New Year message, the North Korean government has emphasized the importance of the people’s economy more than anything else. Coming on the heels of the currency revaluation and other follow-up measures, this emphasis on the economy seems weightier than ever. However, the capacity for the North Korean government to provide the necessary essential goods to the people is very limited, as it waits for the economy to revive. Recent Central Party discussion about reallocating 40% of the national defense budget to invest in the economy should be highly lauded. Nevertheless, if internal production cannot meet people’s needs, then North Korea must rely on external help. The New Year’s message seems to acknowledge this distinct possibility and accordingly expressed a strong desire to improve NK-US and NK-SK relationships. However, it remains to be seen whether this is just lip service or will actually lead to a substantive movement forward.

North Korea Today No. 324 Special Edition January 2010

[“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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[Hot Topics No. 324]
Rice Price Soaring by Hour, up to 150 NK Won
Merchants Stopped Selling due to Steep Price Hike
"Government is Waging a Silent Battle to Collect Merchants’ Money.”
"The Only Option is Full Collaboration with China,” Central Party Official says
Rumor of another Currency Exchange Once Spread in Chungjin

[Editorial]
With Hyperinflation, Daily Necessities Supply Plan in Urgent Need
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[Hot Topics No. 324]
Rice Price Soaring by Hour, up to 150 NK Won
As the New Year begins, the prices are soaring up all across the country. On January 3, rice was traded at 90 NK won per Kg, and corn at 45 NK won per Kg in Soonchun Market. This is twice as much considering the rice price of 40-50 won and corn price 20-25 won on December 30. The inflation has been even more serious in Chungjin, North Hamgyong Province. On January 3, the rice price in Soonam Market in Chungjin was 110 won during the afternoon and suddenly jumped to 140 won in less than an hour. The prices continued to rise on the 6th. In Dangsang Market in Mankyong District, Pyongyang, the rise price went up to 120 won per kg and the corn price to 70 won. On the same day, the prices in Soonam Market in Chungjin broke the record high with rice at 150 won and corn at 75 won. As if in competition, the price of rice in Pyongyang also went up to 150 won on the 7th, the next day. On 8th, the rice price in Chungjin dropped to 100 won in the afternoon and again to 50 won, but soon it soared up to 200 won. The fluctuation of prices is continuing as of January 9th.

Merchants Stopped Selling due to Steep Price Hike
As the prices of goods continue to rise merchants stopped selling and wait for prices to settle. They simply do not want to sell their merchandise since nobody knows how much further the prices will go up. Even the police officers who were cracking down on prices in the market halted their enforcement activities in the face of skyrocketing prices. The residents reacted to the sudden price hike and said, “Market activities will be severely impacted since the government did not set the prices of goods after the currency revaluation, did not release the goods, and banned the use of foreign currency.”

An official in Soonchun, South Pyongan Province also explained that “Since the currency revaluation on November 30 and subsequent announcement of government-set prices, the government declared that adjustments of prices will be made after surveying the opinions of the people throughout the country for 20 days. However, market prices became extremely unstable because the newly adjusted government-set prices have not been announced yet due to the shortage of food and commodities.” As a matter of fact, in the markets of the major cities throughout the nation such as Pyongyang, Pyungsung, Soonchun, Hamheung, Chungjin and Sinuiju, there are many merchants who simply stopped selling because of skyrocketing prices. As prices did not settle over time, goods were traded at the prices set by merchants in the market and by the sales staff in government-run stores, making the prices fluctuate. The residents expressed discontent by saying, “It has been a month since the currency revaluation was done, but the government is not providing proper measures. People are unable to develop a sense of stability and those who cannot do business are feeling very insecure about their lives. The situation in the sale booth is not much different for industrial goods, food items, commodities from that of the grains. The number of sellers continues to decrease and even those who came to the market simply sit idle because there are not many things they can sell. Markets flourished for a while with the cash distribution to farmers and wage payment to laborers, but the whole atmosphere has cooled down very rapidly. The residents of Hamheung expressed their concern saying, “Many people are worried that the situation will get worse since Soonam Market in Chungjin, and Joopyung Market in Hamheung will be closed following the closure of Pyungsung Market.”

“Government is Waging a Silent Battle to Collect Merchants’ Money.”
Currently without adjusted government-set prices announced, prices are skyrocketing by the hour nationwide. Residents express their anxiety saying “It feels like a chaos broke loose in our daily life.” Some skillful merchants are taking advantage of the situation by selling products at a doubled price, recovering the earlier loss due to the currency revaluation. An official in Pyongyang claimed that the government is not announcing the adjusted government-set prices “because of the shortage of goods and money in the government.” He observed that although the government has released money, the money is in individuals’ possession and not much of it is flowing into banks. This makes it difficult for the government to engage in economy management and determine the prices. He also said, “The current situation is much like the government is waging a silent battle to collect merchants’ money.”

Officials in Hamheung and Chungjin made a similar remark on the soaring prices saying, “Currently across the northern half of the country, merchants are not selling goods in markets of any city or county. As for the national situation, there is no food resource due to the bad crop yield. Although the government is obligated to provide at least the essential commodities for living after the currency exchange, if not satisfying the residents’ living needs, that minimum requirement has never been met. The situation is worsening since the government does not have money and goods.”

“The Only Option is Full Collaboration with China,” Central Party Official says
The North Korean authorities are concerned that the currency revaluation may lead the county into two different directions. They believe the success of the revaluation would expedite the process of building a Strong and Prosperous Nation, but otherwise the country would fall into a chaos. The current situation is not all that promising because government-set prices have not even been announced yet due the shortage of food and products. A Central Party official reported, “The changing circumstances seem to suggest that we may end up taking loans and aids from China and follow their lead with full collaboration. Designating Rasun city as a Special City a few days ago was not an isolated incident.”

Some residents are demanding, “This currency revaluation is giving people so much a hard time. They need to announce the national prices as soon as possible and provide relief for people’s difficulties. A high priority should be given to stabilizing the chaotic living conditions people face.” Meanwhile, as prices of all goods including food soar, the number of families relying on porridge is rapidly increasing. In addition, many restaurant branches of social feeding and clothing care centers stopped their operation. A significant number of residents make daily living by selling rice cake, Korean sausage, tofu rice (fried tofu filled with steamed rice) and read bean porridge, and their livelihood is severely impacted by the interruption.

Rumor of another Currency Exchange Once Spread in Chungjin
A rumor saying that there will be another currency revaluation in mid-January circulated in Soonam Market in Chungjin, North Hamgyong Province, causing confusion among the residents. In response to the rumor that 2,000 won and 3,000 won bills will not be used, there were some merchants who ceased selling goods in the afternoon of January 3. In the evenings of January fourth and the fifth, party officials of Soonam district visited neighborhood units to explain that the rumor was nonsense. The officials convinced the residents that only government-announced orders and public lectures are to be trusted.

[Editorial]
With Hyperinflation, Daily Necessities Supply Plan in Urgent Need
Since the currency revaluation, North Korea is experiencing abnormal inflation. In major cities across the country, the prices are unstable and being reset every hour. As a result, people are refraining from trading and just waiting for the prices to be stabilized. The chaos in price can be easily observed by following the trend of rice price.

Prior to the currency revaluation in November, the price of rice was relatively stable at 1,800 – 2,000 NK won all across the country. After the revaluation, rice was traded at 30 – 50 NK won while the state was setting the rice price at 23 won and the distribution price at 44 won. However, the rice price began to jump continuously since January 2 to 60, 70, 80, 100, 130, 140, and 150 won. On January 8, the price dropped to 100 won and again to 50 won for a while, but it rebounded to 200 won. The prices are extremely unstable, and nobody can guess what would come next. Since it is hard to predict the future prices, people are trading only small quantity whenever need arises.

The government officials in charge of economy have been saying that despite the temporary confusion caused by the currency revaluation, the new order would settle in January. On the contrary, a hyperinflation, market contraction, and the policy of wholesale market closure all add up to aggravate people’s discontent with the economic policies. Moreover, the chaos in the market is directly affecting people’s livelihood.

As NKT has pointed out in many occasions, the success of the currency revaluation is contingent upon the government’s ability to supply daily necessities to its people. Only when sufficient amount of food and other supplies are provided can the government control the prices and make them settle at the state-set level, and stabilize the people’s economy. If that is already going awry, its goal to stabilize people’s livelihood through currency revaluation will never be achieved. Does North Korean government have such capacity or any other supply plan?

The government should reconsider the market closing policy if it is unable to provide sufficient daily necessities. For the last decade, people have struggled through hardships and managed to create small markets in order to survive on their own. Closing down the markets where people have proved that they can support themselves is to deprive them of their right to live. At this point, legalizing and promoting the market is literary the only way to stabilize people’s economy especially when there is no policy at all to support the people.

The new currency notes have been circulating in the market for almost a month. Most people, however, are suffering harder than before, let alone benefitting from the enhanced purchasing power. If the price instability continues, it is very likely that the currency revaluation will end up a great failure, leaving the national economy drowned in an extreme chaos. We urge the North Korean government to react promptly, make plans to supply necessities, and implement them thoroughly. The clock is ticking.

North Korea Today No. 323 Special Edition January 2010

[“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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[Hot Topics No. 323]
H1N1 Flu Widespread in Pyongyang
Relief Medication from South Korea Insufficient for Pyongyang
Universities Start on January 9th Nationwide
Political Prisoner Detention Center Employee’s Two Children Infected with H1N1 Flu

[Editorial]
Additional Aid Needed to Prevent Further Spread of H1N1 Flu in North Korea

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[Hot Topics No. 323]
H1N1 Flu Widespread in Pyongyang
A medical official in Pyongyang reported a continued spread of H1N1 flu in Pyongyang. Child day-care centers and kindergartens are closed, affecting married couples who both go to work. There are series of deaths of children in the child care facilities that have already been quarantined. Moreover, the severe winter weather brought flu epidemic as well. The medical official expressed his wish: “It is getting harder for us alone to fight the disease. I wish some external help come to save these innocent and poor people in a more proactive and massive scale.”

Relief Medication from South Korea Insufficient for Pyongyang
H1N1 flu medication aid from South Korea is reported to be provided mainly in Pyongyang, and the priority was given to the endemic areas within the city of Pyongyang. One government official explained that the medication is not sufficient enough to reach the provinces. The medication delivered to the provinces was made available first to officials such as provincial party officials. So, it has not reached the average residents yet. In the provinces, provision of medicine seriously falls behind the rapid spread of H1N1 flu. Moreover, trading with China practically stopped after currency revaluation, aggravating the situation. Local hospitals in epidemic areas like Sinuiju, North Hamgyong Province are reported experiencing serious difficulties with obtaining even small amount of glucose and saline solution.

Universities Start on January 9th Nationwide
After implementing early winter break due to H1N1 flu, Departments of Education in provincial parties across the nation are adjusting the academic schedule in the New Year. Universities and vocational schools in North Pyongan Province decided to continue the H1N1 flu break until January 7th, summon the students on the 8th, and start classes on the next day. Details have not been decided for Middle and Elementary Schools yet, but they are expected to start around the 27th depending on the prevalence of H1N1 flu. After observing the situation, schools will open as planned if the epidemic comes to a halt. The schedule is to be readjusted if there is no sign of calming down.

Political Prisoner Detention Center Employee’s Two Children Infected with H1N1 Flu
After the H1N1 infection of 2 children of a Hwasung County Political Prisoner Detention Center employee in North Hamgyong Province was confirmed, access to and from the detention center was severely restricted since December 28. Even when the security agents of the detention center need to leave to execute official duties, a pass is issued only for cases with significant level of urgency. A leading official said, “Once H1N1 flu breaks out among the prisoners, the operation of support facilities of National Security Agency can be affected, so we are highly cautious.” He said the alert for the epidemic is not because of the concerns about the prisoners’ health, but because of the lack of replacement laborers who can do their work.

[Editorial]
Additional Aid Needed to Prevent Further Spread of H1N1 Flu in North Korea
The H1N1 flu which broke out last November in Sinuiju and Pyongyang is said to be vigorously spreading as the weather gets colder. The flu is rampant especially in Pyongyang, forcing child day-care centers and kindergartens shut down, and many of the quarantined children are dying everyday.

For the case of H1N1, the North Korean authorities reacted much faster than any other previous cases. They admitted the outbreak of the flu to the international community and promptly accepted the South Korean aid of medicine. It is also noticeable that they designated the flu patients as No.11 urgent matter case which mandates immediate medical attention to prevent further spread by bringing national-level efforts for prevention.

However, despite the national-level efforts, lack of overall medical resources in North Korea makes it very difficult to work efficiently in dealing with prevention and stopping further spread of the flu. The casualty of H1N1 will be much higher compared to South Korea and other advanced countries where all kinds of medical equipments and resources are made available to deal with the disease. Recently, the government of South Korea sent medicine to the North in the amount that can treat 50,000 patients. That is not enough to treat patients in Pyongyang alone, leaving patients in other areas without any treatment at all. Pyongyang always receives all kinds of resources first. So, if people in Pyongyang are suffering from a lack of medicine, the conditions outside of the capital city must be even worse.

Considering the danger of H1N1 flu, North Korea should release the number of casualty and the current status of H1N1 spread in their country, and appeal for international aid. In addition, it should report the result of relief medicine distribution to South Korean government and appeal for more aid.

The international community and the South Korean government should react swiftly to the North’s appeal. With the North Korean government’s cooperation, they should explore ways to provide aid first to the most vulnerable communities, areas, and classes. Moreover, sufficient amount of basic medical supplies and other hygiene facilities should be provided in addition to vaccines so that the medical care can cover rural areas as well.

Although the first news of the New Year is tragic one, we hope that it can be used as a stepping stone for building a positive and cooperative relationship between the two Koreas.

North Korea Today No. 322 Special Edition January 2010

[“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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[Hot Topics No. 322]
Soonam Market in Chungjin to be Closed in March
Chupyung Market in Hamheung to be Closed Following Soonam Market
Salary Payment Brings 100% Attendance Rate for Laborers Performing Hazardous Work
Hoeryong Enterprise Provision Prices Lower than Market, but Higher than Distribution Agency
Rising Cost of Living Offsets Potential Benefits of the New Currency Exchange
Farmers Are Buying up Goods Didn’t Sell Much Before
500 Won Levied for 3 Great Revolution Red Flag Nomination Project Fund Burdens Farmers
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[Hot Topics No. 322]
Soonam Market in Chungjin to be Closed in March
North Korean authorities are to close down Soonam market in Chungjin, North Hamgyong Province in March following the shutdown of Pyongsung market in South Pyongan Province last June. The cabinet decided on a measure to cease the operation management of the Soonam market on December 30, which practically means a closure. Hereafter, North Hamgyong Provincial Party Committee will take charge of the closing process and take the party leadership initiative. The provincial party decided “to implement a propaganda campaign project in order to control opinions and utterances of the residents.” The intention is to eradicate possible strong resistance of the residents by means of a carefully designed ideology campaign. Having been in operation only for five years, Soonam market is located between Chumok-dong and Chungnam-dong in Soonam District. The Provincial Party plans to demolish the market beginning in March and build trendy parks and houses.
The decision to close Soonam market is expected to shock the residents who rely on trading just like the closing down of Pyonsung market. Soonam market is well-known as ‘the Republic’s Wholesale Market’ along with Pyongsung market. It is a market with the most commercial activities in the country, and business in trucks is active in particular. As such, the market was regarded by the North Korean authorities as a breeding ground of anti-socialist phenomena, especially unlawful activities. Soonam market is also a place where a group of female merchants protested in opposition to a measure that banned women under 50 from doing business in March, 2008, which perplexed the Central Party.
A South Hamgyong Provincial Party official explained, “There is no other reason for the Party to close down Soonam market than to pave the way to the Strong and Prosperous Nation.” Currently, approximately more than 40% of residents of Chungjin are estimated to rely on Soonam market, so the impact of its closure is expected to be substantial. Households that make livings by trading at the market are deeply concerned about their future without the market already.

Chupyung Market in Hamheung to be Closed Following Soonam Market
Chupyung market in Hamheung, North Hamgyong Province is soon to be closed following Soonam market in Chungjin, North Hamgyong Province. Hamheung City is the largest industrial district in the northern region and has a substantial amount of production and demand of handicraft manufacturing and industrial edge processing products. Located in Sapo District in Hamheung City, Chupyung market is a whole sale market for edge processing products manufactured by individuals. It is as large and crowded with wholesale merchants as Pyongsung market. As the market is crowded and busy, crime activities including fraud and robbery have occurred frequently. As such, authorities announced the closing down decision explaining, “The operating manner of the high-profile markets in the northern region is notorious even overseas. Difficult situations of the residents have been broadcasted (overseas) and often used by the media to criticize the Military First Policy of the Republic. It is certainly defamation of the country’s reputation and authority.” All the advantages and disadvantages resulting from the closing down of Pyongsung market in last June are to be analyzed and based on the experience, Soonam market in Chungjin will be closed in the first quarter. In the same period, Chupyong market will be put in a pre-closure phase. After the closure of Soonam market is completed, Chupyong market will finally stop operating in the second quarter. The Party order illustrated that the purpose of the market closure is “to expedite the realization of the Strong and Prosperous Nation, so all the citizens live equally well in the Strong and Prosperous Nation in 2012.”

Salary Payment Brings 100% Attendance Rate for Laborers Performing Hazardous Work
As far as the salary is concerned, the workers in the 2nd labor unit of the mechanical factory in Raman coal mine, Chung-Jin City, North Hamgyong Province receive relatively high salary. The amount of salary they have received this time was 9,500 NK won. They received relatively higher salary because of the hazardous work condition they are in. When the amount of salary was known, more and more workers desired to work in this labor unit. Some of the workers were spotted visiting homes of the higher officials in an attempt to bribe them for an assignment in the labor unit. This is an astonishing change compared to the situation in just a couple of months ago considering the fact that, until last November, no one wanted to work in this unit even with provision of ration because salary was not paid. By that time, only about 10 out of 17 workers regularly reported to the work. Ever since salary was paid on the 23rd of December, all the workers reported to work every day. Kim, Hyuck-Cheol, who works in this unit, is eager to work every day and does not want to miss a single day despite the advice from his physician who issued a medical note so that he can take a month off because of his medical condition. He does not want to take time off because there is no guarantee that he will get the job back when he returns to work.

Hoeryong Enterprise Provision Prices Lower than Market, but Higher than Distribution Agency
December 28, factories and public enterprises in Hoeryong, North Hamgyong Province provided grains to laborers. They bought imported rice for 30 won and flour for 28 won from the city grain administration agency and distributed at a slightly higher price to laborers: 35 won for rice and 32 won for flour. Some laborers are complaining that enterprises and factories are profiting from laborers. However, the price is still lower than the market price, so regular laborers rush to purchase food at their factories and enterprises. Currently in Hoeryong market one kilogram of rice, flour and corn is traded at 45-50 won/kg, 50 won/kg, and 20 won/kg respectively.

Rising Cost of Living Offsets Potential Benefits of the New Currency Exchange
After receiving salaries and estimating the living expenses which include November rent fees, electricity and water bills, residents feel that rising living expenses are offsetting the potential benefits of the enhanced value of new currency. Shin Hwa-myung (alias), a resident in Siniju, North Pyungan Province, said that each household pays from 300 to 600 won for rent in the apartment complex where she currently resides. In addition to the rent fees, people need to spend substantial amount of money to purchase grains, foods, and other basic commodities. If you also count the additional amount of money people have to spend for medicine due to the new H1N1 flu virus, which is sweeping the country, living expense rises way beyond the one-month budget of an average resident. Shin said, “My salary is not enough to afford haircuts, perm, and bath. Electricity lasts barely an hour in a day. Even that electricity is strong low voltage not suitable for TV. I thought about buying a power meter, but it was as much as 30 Euros.” Although the value of the currency has increased 100 times, Shin feels that the prices of goods have increased just as much, leaving her standard of living unchanged.

Farmers Are Buying up Goods Didn’t Sell Much Before
With the one-year worth of new currency distribution money in hand, farmers crowd into the markets to shop, keeping the markets brisk. Farm households with individuals who received 15,000 won each, especially couples with 30,000 won and families of three that received over 40,000 won in total, are beginning to purchase household goods. As they have always been short on money, farmers with cash are now on shopping spree. Even the products that did not sell very well before are now worth more than 150% of the old price and out of stock. With laborers who recently received wages joining the buyer’s parade, supply falls short of the buyers’ needs and prices keep rising. Merchants who were frustrated by the market contraction after currency revaluation now seem to be relieved due to the increase in daily earnings. Some of the merchants who had built up a large stock of products before the revaluation measure have earned more than 100,000 won in new currency already as the prices soared. On the contrary, petty merchants who buy goods from providers on credit and live on the daily earnings have difficulties in saving money. After repaying the credit to the providers, they are left with little profits in hand. After all, the situations suggest that those with money (foreign currency) or business resources (products) are rapidly recovering from the aftermath of currency revaluation while daily earning merchants who experienced temporary relief are regressing back to the same difficult condition in the past.

500 Won Levied for 3 Great Revolution Red Flag Nomination Project Fund Burdens Farmers
Although farmers seem to be actively participating in economic activities at least temporarily by purchasing goods in markets with the cash distribution, the future does not seem all that optimistic. People fear that, after deducting some elements, including nontax payment and food loans, it may result in a loss rather than a profit, and the fear seems to present itself as a reality already. For those households that borrowed food in the spring hardship season, they are required to repay the loan. Conflicts have occurred between lenders and borrowers when they convert the debt to new currency. The issue was raised to City Parties and police stations, and City Party officials and police officers have been conducting follow-up activities on the use of distributed money since December 26 under the direction of City Party. In addition, a levy of 500 won to fund the Three Great Revolution Red Flag Nomination Project imposed on farmers aggravates the financial burden. Kim Jungbin (alias) in Hameung, South Hamgyong Province said, “During the currency revaluation, they only allowed 1,000 won in new currency per household, but now they are asking us to donate 500 won, a half of the whole amount, to fund the Three Great Revolution Red Flag Nomination Project. It is absurd. Although the fundraising is more like a loyalty competition among units based on voluntary participation, the money comes from the farm laborers after all.”

North Korea Today No. 321 Hot Topics and Food January 2010

[“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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[Hot Topics No. 321]
Nationwide Distribution of Goods Made in Kaesung Expected in March
Nationwide Teleconference to Discuss Measures “to Supply Goods to Residents”
Central Party Meeting, “Allocate 40% of Defense Budget for People’s Economy”
Full Wages to be Paid for 6 Months Regardless of Performance
“Provision of Full Living Cost to Laborers” Ordered

[Food]
Two Tons of Rice per Jungbo Produced in Shinryung Collective Farm in Nampo
Double-Crop Farming Last Year Not Successful in South Pyongan Province
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[Hot Topics No. 321]
Nationwide Distribution of Goods Made in Kaesung Expected in March
The Central Party of DPRK plans to distribute South Korean goods made in Kaesung to state-run stores nationwide between January and March. At the same time, it will put a ban on all products currently traded in markets in major cities across the nation. Despite several crack-downs on banned items, private merchants and residents have secretly continued trade. The decision to distribute goods produced in Kaesung was made according to the policy: “Clear up the market and set a new inventory limited to state-provided products. The State will provide necessary items only through the state-run stores to meet the demand of the people.” Following the decision, the Central Party reaffirmed the policy that it prohibits individuals from privately trading the same items supplied by the State.

Nationwide Teleconference to Discuss Measures “to Supply Goods to Residents”
On December 29, the Central Government held a teleconference with Party Committee in every province, city, and county. The participants were Party secretaries and managers of factories and companies in cities, counties and provinces. The agenda was “to discuss how to supply consumer goods to residents in the aftermath of the currency exchange.” The action plan resulted from this meeting is to release goods in Pyongyang first and then distribute daily necessities nationwide. From January 2, residents must buy all products at fixed prices newly set by the State. As of January 3, they are busy preparing measures to curb the price hike in the market.

Central Party Meeting, “Allocate 40% of Defense Budget for People’s Economy”
On December 10, the Central Party held a meeting with Organization and Guidance Department, economy management officials in the cabinet, and industry management officials in each department to discuss how to boost people’s economy. The contents of the discussion were as following: “We have heavily invested in national defense for the past years and achieved great results which we can proudly announce to the whole world. However, we have had difficulties with domestic food production due to natural disasters and their impacts on agriculture. Although we were unable to supply enough food to residents, and the nation suffered from temporary hardships, it is time to face the problem. In order to boost people’s economy, we should allocate 40% of defense budget to many sectors of people’s economy and realize the Strong and Prosperous Nation. We need to revitalize factories and companies that produce consumer goods. For various reasons our nation has suffered continued hardships for the past 15 years. It has affected people’s lives badly which might have led them to distrust the government’s policies. However, we will accomplish the goal of Strong and Prosperous Nation by 2012 and show our triumph to the world on the 100th anniversary of our Great Leader’s birthday on April 15, 2012.”

Full Wages to be Paid for 6 Months Regardless of Performance
Central Party announced a policy that directed factories and public enterprises to pay full wages to laborers regardless of the production performance until April, 2010. The wages paid in December were counted as November wages, so it adds up to 6 months from November to April. This policy is to demonstrate “the nation’s will to improve the living standards of laborers and farmers.” The officials seemed to be in an awkward position to hear the new order because when the wages were paid in December, the plenary meeting decided that the pay will be commensurate with the total output and working days beginning in January 2010. An official in Pyonsung, South Pyongan Province, said, “We have no other option than to follow it, since it is an order. We decided to keep it a low profile for the moment and announce it when we pay laborers next month.” He also reemphasized that the order was “our government’s will to assure that laborers, office workers, and farmers will definitely have improved living standards.”

“Provision of Full Living Cost to Laborers” Ordered
On December 28, the Central Party ordered “full provision of the living cost to laborers after the implementation of government measure.” In addition, it was also directed that “there should be no cases where some officials appropriate the money fraudulently to one's own use in the name of social mobilization and other reasons and do not distribute the total amount of laborers living costs the national bank had provided.” The current status report of factories and public enterprises in major cities nationwide reveals that factories and enterprises not-in-operation, enterprises in non-production sectors, and construction companies are not paying the set wages. The base wages of regular laborer is set to be 1,500 won, but in many cases, about 1,200 won was paid depending on the number of attendance. In Hameung, South Hamgyong Province, a laborer who showed up for 15 days out of 25 business days in November was paid only 500 won.
Farmyard manure assignment in December precluded laborers from going to work but the wages were reduced based on the attendance, raising complaints by laborers. As they were required to submit 1.5-1.7 tons of farmyard manure individually, laborers argued that they could not rest on their days off and even had to be absent from work in order to gather or make the manure. They expressed resentment that the factory officials said on the one hand “food problem should be solved to realize the Strong and Prosperous Nation, so wages will be cut unless you fulfill the manure assignment,” and on the other, the officials also say the wages would be paid only for the days the laborers actually worked, so they were perplexed. The laborers complained that this must be a scheme not to pay the full wages after all. Without the manure assignment fulfilled, the laborers are kept at work until 8 or 9 at night to be criticized and verbally abused, so naturally the laborers became tired and exhausted. Some laborers even request that “I would rather not receive the wages, so give me less social assignments and make me work only for the amount of time set by the National Labor Administration Regulation.” Cho Guanhyun (alias) in Hamheung said on the popular sentiment that “The officials do not hold themselves accountable, but they enforce bureaucratic exploitation and oppression and impose strong labor rules. Among laborers, it is often said that now that the country says this national measure intends to improve farmers’ and laborers’ lives, then a blindly imposed labor like this should be stopped now.”

[Food]
Two Tons of Rice per Jungbo Produced in Shinryung Collective Farm in Nampo
Grain yield at Shinryung Collective Farm in Nampo, South Pyongan Province is reported to be low. Just two and a half tons of corn and only two tons of rice per Jungbo (2.45 acres) were harvested. Three tons was the highest and 1.5 tons was the lowest yield produced per Jungbo. The farm officials analyzed that the last year’s weather was to be attributed. When it comes to cash distribution to the farmers, farm laborers with full-attendance (no absence) were paid 14,000 to 15,000 won and those who were absent for 2 to 4 months received 6,500 to 9,500 won. The allocation was decided at the Ri farming management commission according to the farming performance and number of attendance. However, for the farmers who took grains in advance during the last year’ food crisis, the equivalent value of money was deducted from the cash distribution. Three farm households took 30kg of early ripening potatoes and 24 kg of barley, equivalent to 20 days of meals, in advance, and they had to pay 580 won at the cash distribution. Farm laborers paid 500 to 800 won on average depending on the amount of grain they borrowed.

Double-Crop Farming Last Year Not Successful in South Pyongan Province
Officials of Farming Management Commission in South Pyongan Province evaluated that the outcome of double-cropping was not impressive after examining the last year’s yield. One official reported that following the Party’s agricultural revolution order that aimed to raise the grain yield in the year of the transition to the Strong and Prosperous Nation, the banner of increasing the grain crop by double-cropping was put up high last year, but the crops did not succeed due to the lack of agricultural materials and technical skills. Particularly, the farms that introduced double-cropping for the first time had low yields. It was due to the inexperienced and unskilled management overall; rice transplanting and fertilizing were not done on time and the labor force was not allocated appropriately. Technology officials of the South Pyongan Province Farming Management Commission inculcated the farm officials of the lower units with the idea that “double-cropping needs to be implemented regardless of the crop yield because the Party’s agricultural revolution order of double-cropping should be accomplished.”
A significant amount of grains planted for double crop died in Soonchun City, Pyongsung City, Daedong County, Pyonwon County and Munduk County. Farm management officials said that had Korean cabbage or white radish been planted on the areas that were used for double-cropping, enough amount of fall vegetable would have been provided. Farmers of South Pyongan Province said, in order to succeed in double-cropping, land improvement projects should be revamped to make the land fertile and reach the grain production goal. The farmers observed that agriculture officials only insisted on orders without creating the environment for successful farming, which resulted in crop failure and loss. Kang Sungae (alias) said “It is frustrating to work on the unproductive projects that officials insist. We farmers suffer from double torture of double cropping labor when we suffer from not having enough food for us.”

North Korea Today No. 319 Full Version December 2009

[“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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[Hot Topics]
Note: Hot Topics of this edition were released earlier as a separate edition.

[Food]
Note: Food section of this edition was released earlier as a separate edition.

[Economy]
Farmers Received Cash Distribution of 14,000-15,000 Won per Person
Government-set Price is Higher than the Market Price, an Odd Phenomenon
Pyongyang Residents Wonder Why the Official Grain Price is More Expensive
Hamheung Sold Rice at 28 Won until Market Price was Announced
Female Merchants Beaten for Resisting Grain Prices Regulations
Only Half of the Steel Commodities Manufacturing Factory Workers Coming to Work in Kumya County

[Politics]
Investigations Continue after November Espionage Incident in Heoryong City
The Primary Party Secretary Committed Espionage by Calling his Defector Wife
All Spy Accomplices at Yusun People's Hospital are Dismissed
Forty Inspectors Dispatched in Yusun-dong, Hoeryong City

[Society]
Two-family Households Struggling with Currency Exchange of 1,000 Won
Elderly Woman Selling Spring Water Gets Fortunate Chance Due to Currency Change
After the Currency Reform, Officers of the 5th Division Based in Kosan County Avoid to Retire

[Women/Children/Education]
Elementary Schools in Hoeryong Burden Parents with Manure Collecting
Teachers Punished for Mobilizing Students to Collect Manure

[Accidents]
Sungchun County, a Kkotjebi Run Over by a Coal Train
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[Hot Topics]
Note: Hot Topics of this edition were released earlier as a separate edition.

[Food]
Note: Hot Topics of this edition were released earlier as a separate edition.

[Economy]
Farmers Received Cash Distribution of 14,000-15,000 Won per Person
After closing the accounts for cash distribution for this year, results show that farmers received on average 14,000-15,000 won in cash per person. There are many farms that did not finish closing their accounts. However, those farms that have finished are issuing the full amount to farmers regardless of the number of days they have worked. The majority of families have more than two farmers in the household, so they received cash distribution of more than 30,000 won on average. In the case of a 4-member household, the cash distribution amount was up to 60,000 won. Those farmers who received cash after a long period of shortage are beginning to spend money to prepare for the New Year’s Day celebration. As a result, the prices of goods have more than doubled in the midst of instability in the market, as farmers spend a great deal of money to purchase goods for the New Year’s Day celebration. In the case of Sinuiju, North Pyungan Province, the prices are going up rapidly because farmers are going to the city and buying up refined rice, wheat flour, bean oil, as well as other items. The price of a five-liter bottle of bean oil is 280 won, but it is hard to obtain even at 380 won.

Government-set Price is Higher than the Market Price, an Odd Phenomenon
Disbursement of salaries for December for workers and retirement welfare money in new currency has been completed. The increased value of the new currency turned a salary of 2,000 won into a large amount of money that can purchase about 45 kg of rice (given the price of 44 won for 1 kg of rice). Two thousand won in old currency was not enough for even 1 kg of rice. On December 25, the price of pork was 120 won per kilogram in Sinuiju, but the price jumped to 140 won in less then half an hour. In Chulsan-eup, Chulsan County, North Pyungan Province, pork was selling at 170 won per kilogram. The selling price prior to the currency exchange was 7,500 won per kg, but now the price is equivalent to 17,000 won in old currency. Thus, there are goods for which the prices are going up by the hour, but at the same time there are items for which the government-set prices are much higher than market price because the prices remain as they were before the currency exchange. For instance, the price of a bar of soap called Bohmhyanggie (scent of spring) produced by a cosmetic factory in Sinuiju is 30 won, the same as before the currency exchange. The official price of a bar of soap prior to the currency exchange was 700-1,000 won each, which was 20 times more expensive than the government-set price of 30 won. However, things changed after the currency exchange. The government-set price is still 30 won, but in the market, it is selling for 10 won in the new currency. There is a small grocery store in front of Chaeha Market in Sinuiju, North Pyungan Province. Here, goods are being sold for one hundredth (1/100) of their previous price. People say, “There is always a stampede of people at the store. Previously, the government-set price was always cheaper than market price, but now for some items it is more expensive than the market price.”

Pyongyang Residents Wonder Why the Official Grain Price is More Expensive
Pyongyang City has started to distribute rice at 46 won for 1 kilogram as of early December. The residents are wondering how the price of goods could remain the same while the currency has been deflated by a ratio of 1:100; every price should also have been reduced by 1/100. However, the government-set price of rice remains high. There was rumor of state-run stores will have enough supply of goods in the beginning of January but at this point, it is not likely to happen. To make matters worse, people can no longer import grain from foreign countries. Importing rice for profit has been prohibited, and only free food aid from abroad is allowed. If a company is caught while importing rice, the level of punishment is expected to be very grave even as to jeopardize the existence of the company itself. Meanwhile, the State having collected only 30% of the old currency so far continues to trouble collection efforts. The heads of the Neighborhood Units were instructed again to “Turn in the old money”.

Hamheung Sold Rice at 28 Won until Market Price was Announced
Hamheung Distribution Office at South Hamgyong Province had been selling rice at 28 won per kilogram until an official document regarding the distribution price was delivered on December 19th. On December 8th, the rice was selling at 44 won per kilogram; it dropped to 35 won the next day and fell to 28 won on the 12th. The market price was 30-40 won at the time, so the residents did not buy the rice from the market but instead purchased it from the distribution office. Some residents expected the price of rice sold by the distribution office to fall even further since it fell down to 28 won, so they held off on buying the rice. On the contrary, the merchants anticipated that the price of food would soon rise as supply continues to dwindle in the supply station. So they asked around for residents who have not yet purchased rice, and hoarded as much rice as possible from the supply station. Some merchants even purchased more than 300 kilograms of rice using this method. The distribution office sold the food until the morning of the 18th, but the transportation of food was not going smoothly so the sale was interrupted until the 20th. Starting on the 21st, it began to sell at 44 won, in accordance with the announced price. On the other hand, the market price of rice has increased from 30-40 won per kilogram to 50 won as of the 23rd.

Female Merchants Beaten For Resisting Grain Prices Regulations
On December 8, conflict arose between female merchants and the police who were enforcing the grain prices at a market in Soonchun in the South Pyongan Province. Around 5 p.m., a policeman approached a female merchant who was selling rice for 60 won per kg saying, “Are you resisting the Party policy of lowering market prices?” The female merchant, who came from Kangan-dong, denied such the accusation. The policeman then brought two people who bought rice from her, questioned them, and assaulted the female merchant for lying. A similar incident occurred on December 17 in Hamheung in the South Hamgyong Province. A woman who was selling corn for 20 won per ear was questioned by inspectors. When she talked back to them, they assaulted her for resisting the authority. These incidents resulted from the Department of National Security’s directive to all police stations in the nation for “inspectors to severely punish residents who disobey the rightful regulation in order to establish public regulations and order.”

Only Half of the Steel Commodities Manufacturing Factory Workers Coming to Work in Kumya County
The steel commodities manufacturing factory in Kumya County in the South Hamgyong Province is worried because the workers’ attendance rate still remains low during the 100-Day Battle as it did during the 150-Day Battle. Of the 350 workers, only 190 workers are coming to work. Of the 160 absentees, 70 of them are chronically ill. Because these 70 have been absent for so long, the factory’s labor department no longer counts them as its workers. The other 90 absentees have not come to work since July. Many of them stopped coming to work after the 150-Day Battle when the food shortage grew worse in July. The factory tried to raise the attendance rate during the 100-Day Battle, but the workers will not come to work unless they receive food. On September 28, the factory was able to get all of the workers to come to work when they distributed 10kg of corn per person. However, this did not last long, and since October 2, only ten workers have been coming to work.

[Politics]
Investigations Continue after November Espionage Incident in Heoryong City
Heoryong City, North Hamgyong Province is still reacting to November’s major espionage incident that involved a Primary Party Secretary and doctors at the People’s Hospital in Yusun-dong. Last November 10, a nurse working at Sanwon Hospital was caught at the Defense Security Command Checkpoint while carrying a fountain pen that was being used to videotape the harsh living conditions in major city markets and residents. As soon as her interrogation was finished, 60 people at the People’s Hospital in Yusun-dong were arrested, including the primary party secretary and six doctors that had possibly worked together with the perpetrator. There are over 20 people who fled as soon as the Primary Party Secretary at Yusun Hospital was arrested. The Province National Security Agency of North Hamgyong Province commanded lower level agencies to catch everyone who fled using all means and methods. The Province National Security Agency Investigation Bureau and Counter Intelligence Bureau announced, “We will penalize any spies who leaked the party’s and the country’s confidential information through infiltration of the party and government organizations during the period of reconversion for the Strong and Prosperous Nation.” The arrested suspects were criticized for wasting foreign currency, breaching the security of the party and the leader, and for benefiting the nation’s enemies. Some of those who were arrested knew that their actions would aid the nation’s adversaries, but many arrested without acknowledging their culpability. Whether they were aware of the consequences of their espionage or not, they are all being treated as spies. A month after the incident, investigations have continued in the area near Yusun-dong, including Kangan-dong and other districts, in order to find out more about the espionage case.

The Primary Party Secretary Committed Espionage by Calling his Defector Wife
The Primary Party Secretary who was arrested revealed his long-term espionage to be the result of his relationship with a North Korean defector. The National Security Agency discovered that he helped his wife and his daughter flee to South Korea and had been in phone communication with them. It was during his communication with his family that he began to work as an informant. When his family fled the country, the City Organization and Guidance Department protested, “We need to follow regulations and relieve him of his position for failing to fulfill his duty in the family revolution as a party officer.” However, the Secretary of the City Organization and Guidance Department at the time did not dismiss him from his position after receiving a sizable bribe from the Primary Party Secretary. After continuing their interrogation of those individuals connected to the Secretary, the Providence Security Agency of North Hamgyong Province has concluded that approximately 20 people aided in the espionage directed by the Elementary Party Secretary at Yusun Hospital. The Secretary of the City Party Organization and Guidance Department were arrested and interrogated for not dismissing the Primary Party Secretary in a timely manner. Another individual was dismissed from his office amid accusations of bribery and failure to carry out regimental responsibility.

All Spy Accomplices at Yusun People's Hospital are Dismissed
All spy accomplices at Yusun Hospital have been dismissed or fired. Six City Party officials, nine public enterprise officials and managers, and five farm managers have been dismissed and expelled to the toughest enterprises and farms. On December 22nd, while attending a City Party meeting in Hoeryong City, Central Party workers publically criticized the City Party workers and secretaries on the effectiveness of the 150-Day and 100-Day Battles claiming that neither campaign has helped to strengthen the nation. They attested that officials were only concerned about serving their own selfish interests and lacked a sense of loyalty for the State. They also pointed out that corruption among party officials was prevalent and pronounced it as a serious issue. Sixteen officials were dismissed at this meeting without any prior notice and new appointments were made. Newly appointed officials were chosen based on the Party's trust and confidence. The new officials were encouraged to work hard to make the country strong.

Forty Inspectors Dispatched in Yusun-dong, Hoeryong City
It is reported that more investigators will be sent to Kangan-dong as well after dispatching of forty inspectors to Yusun-dong following the spy ring incident at People's Hospital in Hoeryong City, North Hamgyong Province. Secretaries of Yusun-dong People's Hospital and their accomplices were arrested and tried, and since then more people have been arrested. The effective duration of the inspection has not yet been determined. There is rumor that some residents could be expelled to other parts of the country once the investigation is over. An internal order was issued saying not to tolerate those who interfere or express discontent with the investigation activities of inspectors even at the cost of reorganizing the whole city. After the news was announced, residents immediately complained about the need for such censorship and retorted that some people are forced to break laws in order to survive.

[Society]
Two-family Households Struggling with Currency Exchange of 1,000 Won
Struggles for money are evident after the currency change. There are fights within the two-family households as to who should get the 1,000 won. Some families complain to the banks, who tell them they will exchange the old currency to new ones. Consequently, families who discarded their old currency are trying to retrieve the old currency. Some who were unable to obtain the old currency advertised that they will give 300 won in new currency in exchange for 100,000 won in old currency. It has also been discovered that the families of military officers have been allowed to exchange up to 3,000 won.

Elderly Woman Selling Spring Water Gets Fortunate Chance Due to Currency Change
An elderly woman who lives in Sukha-dong in Sinuiju County in the North Pyongan Province said her living condition changed for the better after the currency change. She had been selling spring water to the apartment residents on credit. Due to the currency change, she is receiving the money in new currency which has increased value. She had sold 10 liters for 500 won (old currency). She is happy that she sold those on credit because she has received the amount owed in new currency and has made over 500 won (new currency). This elderly woman has sold water tirelessly in summer and winter. In the winter, she filled the water bottles and traveled the icy roads to deliver the water to the apartment residents before 8 a.m. Looking at the elderly woman in the cold, the apartment residents would ask, “Why do you work so hard for something that doesn’t earn much when you are so old?” She would answer, “If I don’t work, then who would feed me? This is better than doing nothing and starving.” The residents were happy to see the elderly woman’s life change for the better due to the currency change, saying, “There are some people whose lives got better after the currency change.”

After the Currency Reform, Officers of the 5th Division Based in Kosan County Avoid to Retire
After the currency reform of North Korea, officers serving in Kosan of Kosan County, Kangwon Province, are reluctant to retire from their service. In the 5th Division’s quarters, a lecture has recently given to more than 130 officers who were going to retire soon. The main topic of this lecture was the currency reform. More than ninety officers of them delayed their retirement after taking this lecture. It is unusual that so many people put off their retirement, given that it was rare to find officers who delayed retire in Kangwon Province last year. Regarding this, an officer stated, “I heard that the economy has been worsened after the currency reform. As such, many officers worry about their life after retirement because in case their wives lose their jobs, life can be worse. They do not want to be Kkotjebi (homeless) from their first step in the society, so many of the officers have delayed their retirement.”

[Women/Children/Education]
Elementary Schools in Hoeryong Burden Parents with Manure Collecting
Last December 15, elementary schools in Hoeryong, North Hamgyong Province, asked parents to collect manure. Teachers used to mobilize their students to secure it every year, but they did not get students’ help because the school began the winter vacation earlier than usual due to H1N1 Flu. Although this job was teachers’ duty, they visited students’ parents to ask for help, so some parents were obliged to contribute the fertilizer. Currently the 3rd sub-team of the 2nd working unit in Dukheung Seed Production Farm has priority for the usage of this fertilizer because the field has been acidified. This farm has been known for its extremely poor productivity because it has produced less than 2 tons of corn per Jungbo (unit of land, 2.45 acres) for last 3 years. Therefore, the City Party has decided to use manure on this field first when they secure it at the end of this year or early in the New Year.

Teachers Punished for Mobilizing Students to Collect Manure
At some lower and middle schools in Chungjin, Hamgyong province, teachers called out students on their break to collect 1 ton of manure, which was imposed on the teachers. This has been reported to the City Party because the nationwide vacation has started due to H1N1 Flu. The City Party is going to punish the teachers for disobeying the state orders, which prohibits mobilizing more than one student to protect students from the pandemic disease.

[Accidents]
Sungchun County, a Kkotjebi run over by a Coal Train
On December 16th in Sungchun County, South Pyongan Province, a homeless street kid was found under a coal train. The child had crawled under the train to steal a piece coal fallen on the track from the train. The boy tried to crawl out of the track when the train started to move, but his backpack was stuck on the wheel, trapping him underneath the train. The child was identified at the Sungchun police office and they found out that the child was from Wonsan City. They sent a notification to the police station there, but there was no reply, so the scene of accident was cleaned up.

North Korea Today No. 320 Hot Topics January 2010

[“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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[Hot Topics No. 320]
100 Chinese Yuan is Traded at 570 NK won after Ban on Foreign Currency Trading
Public Notice by People’s Safety Agency, “Domestic Trading of Foreign Currency Prohibited Beginning January 1”
Illegal Foreign Currency Trading will be Punished Severely
Foreign Currency Prohibition Announcement is a “Protective Measure for Domestic Currency Value,” Says a Government Official
Crackdown on Foreign Currency Use Begins in Hoeryung
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[Hot Topics No. 320]
100 Chinese Yuan is Traded at 570 NK won after Ban on Foreign Currency Trading
As of January 3, 100 Chinese Yuan (Renminbi) is traded at 570 NK won and $100 USD is traded at 3,200 NK won since the People’s Safety Agency’s announcement of ban on foreign currency trade on December 28.

Public Notice by People’s Safety Agency, “Domestic Trading of Foreign Currency Prohibited Beginning January 1”
On December 28, People’s Safety Agency released a public notice saying, “All citizens can exchange $100 USD with 3,000 NK won at a foreign exchange office. Trading companies cannot use foreign currency for domestic transactions.” As such, foreign currency transactions will cease in all trading companies in the country, foreign currency restaurants, and foreign currency stores, and NK won (exchange voucher) will be used instead. In case trading companies under the Ministry of Foreign Trade have to use foreign currency they will have to obtain authorization from the government first and receive foreign currency from a foreign trade bank.

Illegal Foreign Currency Trading will be Punished Severely
In the morning of December 28, the news of public notice released by People’s Safety Agency regarding the ban on foreign currency use was delivered to all citizens. The residents were asked specifically that “You should report immediately when you see people using foreign currency while engaging in trading inside their vehicle, smuggling, secret trading, and illegal border-crossing.” People were warned that those who get caught by the security agency while using foreign currency illegally can receive the penalty of capital punishment depending on the seriousness of crime. With the release of public notice, the law enforcement agents actively engage in enforcement activities, whereas the money traders find themselves not being able to do business any more. Beginning January 2, the security authorities started their enforcement operations “based on the decree on foreign currency circulation.” Composed of Party officials and law enforcement agents, the enforcement taskforce will crackdown on companies and individuals using foreign currency and thoroughly investigate the source and the circulation route.

Foreign Currency Prohibition Announcement is a “Protective Measure for Domestic Currency Value,” Says a Government Official
A government official in Pyongyang posited that the Foreign Currency Prohibition Announcement is “a measure to ban individuals from doing business transactions using foreign currencies in markets.” In particular, those who do business inside their trucks and large scale trading companies which use foreign currency in place of domestic currency made it difficult to strengthen government finance. The official said exchanging Renminbi (the official name of Yuan) and US dollar with NK won (exchange voucher) at national banks is a measure to prohibit the circulation of foreign currency in domestic markets and to protect the value of domestic currency.

Crackdown on Foreign Currency Use Begins in Hoeryung
As soon as the ban on foreign currency use was announced, the crackdowns took place nationwide. On December 30 in Hoeryung, North Hamgyong Province, the sugar merchants who were exchanging Renminbi and US dollars were caught by police officers in plain clothes. Caught along with them was a woman in her sixties from Sanup-dong who came to prepare for the New Year’s Day holiday while trying to exchange 2 bills of Renmminbi (200 Yuan). The confiscated money was worth 1,140 NK won since the rate is 570 NK won for each 100 Yuan. The merchants and the elderly woman visited the police station and asked for returning at least some of the confiscated money. The officers said, “The enforcement was done based on the new law. You’d better get out before more issues are raised.” The woman begged for the money to buy holiday food with tears, but the police officers pushed her away outside the door. She refused to leave and implored them on bended knees. However, the police officers kicked her out of the room and closed the door. The woman wailed, “I need to buy holiday food to feed my grandchildren without parents. What should I do?” but the police officers never responded.