Korean Peninsula Today, 31 July 2009

Today’s highlights:
1) A South Korean activist stated that Kim Jong-il is undergoing kidney dialysis twice a week as a result of his diabetes
2) A Chinese investment company’s cancelled a contract with Korea Mining Development Trading Corporation, a North Korean company currently under U.N. sanctions
3) The US Treasury Department’s announced that it has put the Korea Hyoksin Trading Corporation (Hyoksin) for being owned or controlled by a North Korean entity that is already sanctioned under the US executive order that freezes the assets of WMD proliferators
and 4) North Korea seized a South Korean fishing boat on the East Sea (Sea of Japan) on Thursday after the boat apparently entered North Korean territorial waters due to a malfunction in its navigational system. On Friday, North Korea has told the South that the appropriate agency is investigating the incident and it does not have anything special to tell the South Korean government at this time. North Korean media has not covered the incident.

Kim undergoes dialysis (AFP)

SEOUL – North Korea's leader Kim Jong-Il is undergoing kidney dialysis twice a week as a result of his diabetes, a South Korean activist said on Thursday, quoting unidentified sources in Pyongyang.

The health of Mr Kim, 67, is the subject of intense interest as he has not formally named someone to succeed him at the helm of the secretive communist state.

'His illness suddenly became worse last May, forcing him to receive dialysis,' Ha Tae-Keung, president of the Open Radio for North Korea, said on a radio talk show.

'The nuclear test was carried out in order to prevent Mr Kim's health problems from sparking rifts among power elites,' added Mr Ha, whose Seoul-based organisation broadcasts programmes to the North.

Mr Kim, who has a history of diabetes and heart disease, is widely believed to have suffered a stroke in August last year.

In video footage recorded in March and shown on North Korean state television last week, Mr Kim barely used his left hand. Most still photos released since his reported stroke have not shown him using his left hand.

North Korea launched a long-range rocket on April 5 and conducted a nuclear test on May 25, its second following the first in 2006. It also has fired several short-range missiles and renounced the truce on the Korean peninsula.

US and South Korean officials believe the ailing Mr Kim was staging a show of strength to bolster his authority as he tries to put in place a succession plan involving his youngest son, 26-year-old Jong-Un.

According to reports, North Koreans are being taught new songs aimed at bolstering loyalty to the next leader, addressing Jong-Un as 'General Kim.'

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N. Korea Mining Project Buckles Under UN Sanctions (Chosun Ilbo)

A Chinese investment company developing a bronze mine in North Korea with a North Korean company sanctioned by the UN Security Council has reportedly called an abrupt halt to the project.

An industry source in China said the investment firm sent a letter to NHI Shenyang Mining Machinery, the company it had commissioned to build facilities for the mine in Hyesan, North Korea, telling it to stop construction. An estimated 400,000 tons of bronze are deposited there.

The Chinese firm had signed an agreement with (North) Korea Mining Development Trading Corporation to develop the mine in November 2006. But the North Korean partner was blacklisted by the UN Security Council after North Korea carried out its latest nuclear test.

The industry source said, "When Chinese Vice President Xi Jinping visited Pyongyang in June last year, he pledged full support for the development of the Hyesan bronze mine so that it could become a model for investment by Chinese business in North Korea. This prompted NHI to hurry construction so that production could start in September this year."

But he added the Chinese government apparently persuaded the investment firm to stop the project as Beijing takes part in the UN sanctions. "Otherwise, it's unusual for a project to be stopped at this late stage," he said. The investment firm reportedly gave NHI no reason for the cancellation.

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US slaps sanctions on North Korean firm (AFP)

WASHINGTON – The United States on Thursday imposed economic sanctions on a North Korean firm that according to US officials was involved in Pyongyang's weapons of mass destruction development.

The Treasury Department said that Korea Hyoksin Trading Corporation (Hyoksin) was sanctioned for being owned or controlled by a North Korean entity, the Korea Ryonbong General Corporation (Ryonbong).

Ryonbong already was sanctioned under the US executive order that freezes the assets of weapons of mass destruction (WMD) proliferators and their supporters, and prohibits US persons from all transactions with them.

"The world community is taking forceful action against the arms and agencies of North Korea’s WMD and missile programs, prohibiting dealings with them and banning them from participation in the global financial system," said Adam Szubin, head of the Treasury's Office of Foreign Assets Control.

The United Nations Security Council designated Hyoksin for sanctions on July 16, saying it was "subordinate" to Ryonbong and for its involvement in the development of WMD.

According to the Treasury, Ryonbong, which also was sanctioned, specializes in acquisition for North Korean defense industries and support to Pyongyang's military-related sales.

Last week President Barack Obama, using emergency powers, extended a set of economic sanctions on North Korea for another year as tension soars with the communist state over its nuclear and missile programs.

North Korea has vowed to build more bombs and to start a new weapons program based on uranium enrichment in response to the sanctions.

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Northeast Asia Matters comment: As of this posting, North Korea has told the South that an appropriate agency is conducting an investigation into the incident and that it does not have anything special to say about the incident. The North Korean media sources have not been observed to report on the incident.

S. Korean fishing boat seized by N. Korea: officials (Yonhap)

SEOUL – North Korea seized a stray South Korean fishing boat carrying four crewmembers and hauled it to a port on its east coast on Thursday despite repeated South Korean warnings, officials in Seoul said.

The 29-ton South Korean boat, 800 Yeonanho, "was tugged to the port of Jangjon at 9:30 a.m.," Lee Bung-woo, a defense ministry spokesperson in Seoul, said in a briefing.

South Korea sent a message calling for the immediate release of the boat, which had been floating in North Korean waters as early as 5:05 a.m., the Joint Chiefs of Staff (JCS) said in a release.

Lee said a crewmember on the boat reported a malfunction with the satellite navigation system via commercial link shortly before it was seized 7 miles (11km) into North Korean waters at 6:27 a.m.

The seizure comes as a South Korean worker remains detained in North Korea since March over allegations that he defamed its ruling system and encouraged defection at a joint factory complex just north of the inter-Korean border.

Ties between the Koreas unraveled after South Korean President Lee Myung-bak took office early last year with a pledge to bolster pressure on Pyongyang to drop its nuclear weapons programs.

North Korea retaliated by suspending reconciliation talks and threatening armed conflict along their border. Tensions heightened further after the communist state conducted its second nuclear test in May and test-fired ballistic missiles off the east coast.

The seized South Korean boat did not respond to initial requests by South Korean naval vessels trying to identify it, JCS spokesman Park Sung-woo said.

"The ship was out of the reach of our radars when it crossed the Northern Limit Line (NLL)," the de facto inter-Korean maritime border, he said. "The boat was also tiny and built with reinforced plastics, which made it hard to identify the vessel with radars."

South Korean patrol boats moved closer to the NLL and warned North Korea twice to "reciprocate by releasing the fishing boat" after the seizure, he said.

The South Korean Navy says it sent back two stray North Korean fishing boats on June 30 and July 5, respectively.

The incident on Thursday marks the third time since 2005 that a South Korean fishing boat has been seized by North Korean authorities.

The two previous boats, which also strayed across the boundary, were released after five and 19 days, respectively, according to officials.

The 800 Yeonanho departed from the port of Geojin on the eastern coast at 1:30 p.m. on Wednesday and sailed past the NLL as far as 20 miles (32km) off the port of Jejin, officials said.

Geojin is about 150km northeast of Seoul and 15km south of the Demilitarized Zone that divides the Koreas.

Skippered by a man only identified by his last name, Park, the boat, which was operating in the East Sea and mainly fishes for squid, was scheduled to return home Friday morning, Lee said.

The NLL was drawn in 1953 by an American commander of U.N. forces that fought on the South Korean side in the Korean War, which ended in a truce rather than a peace treaty.

In the meantime, the JCS said a North Korean fishing boat briefly crossed into the South's waters on its west coast at 5:13 p.m. on the same day.

The North Korean boat, likely experiencing engine failure, was towed by a North Korean patrol boat at 6:04 p.m., it said.

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North Korean TV aims to show dark side of South (Associated Press)

SEOUL – North Korean state TV has aired South Korean footage edited to highlight social and economic problems in the far richer South in a rare move apparently aimed at quashing rumors among the North's impoverished people that the rival country is better off.

Shabby houses in slum areas, the homeless and jobless, and citizens expressing grievances toward the government were shown in 10 minutes of footage broadcast Wednesday night and monitored by The Associated Press in Seoul. The clip was culled from South Korean TV programs and logos of southern networks like KBS and MBC were visible on screen.

"The South Korean economy is now miserably crumbling," said a North Korean narrator with gloomy music playing in the background. She accused the South's conservative, pro-U.S. President Lee Myung-bak of seeking "anti-people economic policies" and called him a "traitor."

"An absolute majority of South Korean people are living miserable lives," she said.

Lee is a routine target of North Korean condemnations. His hard-line policies on Pyongyang since taking office early last year — such as cutting off unconditional aid to the impoverished country — has angered the North, prompting it to suspend all reconciliation talks and key joint projects.

South Korea, which a half-century ago was one of the world's poorest countries, has steadily grown to become one of its most economically developed. It is home to international powerhouses such as Samsung Electronics and Hyundai Motor and is known for its advanced technology.

Still, development has bypassed some. Homeless people and beggars can be seen in the capital Seoul.

North Korea has relied on outside handouts to feed its hunger-stricken 24 million people since natural disasters and mismanagement devastated its economy in the 1990s. The totalitarian regime in Pyongyang strictly controls information on the outside world, while trying to strengthen the personality cult of authoritarian leader Kim Jong Il.

Still, word appears have spread among North Koreans that the South is much richer. Thousands of North Koreans defect to the South Korea each year, usually via China, to escape harsh conditions in their communist country.

A state-run South Korean think tank reported last week that South Korean movies and soap operas, smuggled from China, are increasingly popular among North Koreans despite threats of harsh punishment for viewing them.

Hong Hyun-ik, an analyst at another think thank, the Sejong Institute, said the footage aired Wednesday illustrates the North Korean regime's unease.

"I think the North aired the edited footage after struggling over how to control word that the South is richer than the North," he said. "By showing a reality, which is of course a distorted reality, I think the North's government is trying to tell its people that it's not hiding anything and they shouldn't believe rumors."

Kim Jong-il's bodyguards

Source: YouTube

Korean Peninsula Today, 24 July 2009

N. Korea calls 'comprehensive package' of U.S. incentives 'nonsense' (Yonhap)

PHUKET – A senior North Korean diplomat on Thursday dismissed a U.S.-proposed "comprehensive package" of political and economic incentives for Pyongyang as "nonsense."

U.S. Secretary of State Hillary Clinton, on a visit here to attend the ASEAN Regional Forum (ARF), said Wednesday that Washington is willing to provide the package, including the normalization of diplomatic relations with Pyongyang, if the communist nation moves towards "complete and irreversible" denuclearization.

The comprehensive package is nonsense," Ri Hung-sik, director-general of the North Korean foreign ministry's international organization bureau. Ri is deputy head of the North's delegation to the ARF.

"It is just a replay of the Bush administration's policy of CVID (complete, verifiable, irreversible dismantlement)," Ri told reporters.

He said the North Korean government does not care about U.N. sanctions imposed on Pyongyang for its nuclear test in May, adding it has been under such sanctions "for half a century."

He also charged that the current standoff between Pyongyang and Washington stems from Washington's "deep-rooted hostile policy" against Pyongyang.

Ri said U.S. officials should think about why the North has chosen to develop nuclear weapons.

"The U.S. is telling us to take off all of our clothes," he said. "The most important thing for us is sovereignty. Sovereignty, security, namely life, should be guaranteed. How can we barter life with money?"

The North Korean diplomat said his country is willing to talks with the U.S. if it abandons its hostile policy.

"We can't talk with a person with a knife in his pocket," he said.

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Remarks at the ASEAN Summit (U.S. Department of State)

SECRETARY CLINTON: Good afternoon. Let me start by saying we’ve had a series of very productive sessions here in Phuket, and I’ve had the opportunity for the first time to engage with the nations of ASEAN and our regional partners on issues of common concern, to sign the Treaty of Amity and Cooperation, and to lay the groundwork for even stronger partnerships as we move forward.

I’ve also had the opportunity to meet one on one with a number of my counterparts. Earlier, I met with Foreign Minister Qureshi of Pakistan, and we talked about the encouraging signs in Pakistan’s fight against violent extremists, including the return of significant numbers of refugees to Buner and Swat. There are still great challenges ahead facing Pakistan, including the ongoing threat of violent extremism and continuing economic difficulty. But I assured the foreign minister that the United States stands ready to help the Pakistani Government and people. And I also advised him that I support the steps Pakistan and India have taken to find a more productive way forward.

I want to take this opportunity to discuss the situation in North Korea and our efforts here in the ASEAN Regional Forum to promote security in Northeast Asia. Yesterday, I held consultations with our allies and partners in the Six-Party process, and this morning, there was a very good discussion with the ASEAN nations and regional partners. I was gratified by how many countries from throughout the region spoke up and expressed directly to the North Korean delegation their concerns over the provocative behavior we have seen these past few months.

Unfortunately, the North Korean delegation offered only an insistent refusal to recognize that North Korea has been on the wrong course. In their presentation today, they evinced no willingness to pursue the path of denuclearization. And that was troubling not only to the United States, but to the region and the international community. So the question is, where do we go from here?

I think it’s important to stress that the international community’s response to North Korea’s actions has been unequivocal and nearly unanimous, leading to a new consensus around a common set of principles. The United States and its allies and partners cannot accept a North Korea that tries to maintain nuclear weapons to launch ballistic missiles or to proliferate nuclear materials. And we are committed to the verifiable denuclearization of the Korean Peninsula in a peaceful manner. Now this convergence of views reflected, as you will see later today in statements by ASEAN, and as you saw just a few weeks ago with the G-8 statement and others, produced two important Security Council actions – a presidential statement and a unanimous binding resolution.

Now these are more than expressions of condemnation. Resolution 1874, combined with the designations authorized by the UN Sanctions Committee, provides a powerful tool to curb North Korea’s unacceptable activities, and to put pressure on individuals and entities connected to the regime’s nuclear, ballistic missile, and other WMD-related programs. We believe that this resolution can be effective because it is unprecedented in scope, substance, and approach.

First, it differs from past efforts in that it is based on a global consensus, bringing to bear the combined weight of the international community, not just one nation or a small handful of nations. Second, it targets a spectrum of individuals, organizations, and institutions, not just one or two. Third, it fits into the broader framework of our approach to North Korea. It is accompanied by a message, as I reiterated this morning, that we are prepared to work with the North Koreans if they are willing to act on their previous commitments.

In short, our approach isolates North Korea, imposes meaningful pressure to force changes in its behavior, and provides an alterative path that would serve everyone’s interests. Our joint efforts to take Resolution 1874 from paper to practice are now underway. I asked Ambassador Philip Goldberg to lead an interagency team charged with implementing the sanctions, and he’s already traveled to the region to consolidate and coordinate our efforts. Russian and Chinese representatives have visited Washington to work together on these issues.

And in addition to this week’s meetings, I’ve spoken repeatedly with my counterparts in China, Russia, Japan, and South Korea about our common way forward. I intend to send Ambassador Goldberg back to the region in the near future to continue our common efforts to enforce the sanctions. And next Monday and Tuesday, as part of our strategic and economic dialogue with China, I will be holding intensive discussions with State Councilor Dai Bingguo on North Korea and the broader questions of peace and security in Asia.

In implementing 1874, we are asking our partners to help dissuade all nations from facilitating, directly or indirectly, North Korea’s attempts to enhance and proliferate its nuclear and missile technologies. We were gratified by Burma’s statement and those of many other countries announcing an intension to implement the resolution. Burma’s statement is significant because in the past, North Korea has provided Burma with materials now barred by Resolution 1874.

The bottom line is this: If North Korea intends to engage in international commerce, its vessels must conform to the terms of 1874 or find no port. Our goal in enforcing these sanctions and others imposed earlier is not to create suffering or to destabilize North Korea. Our quarrel is not with the North Korean people. In fact, it was the North Korean leadership that rejected humanitarian aid from the United States and forced us to suspend our food aid program.

So let me be clear: As we work to end the regime’s nuclear program, we remain committed to the well-being, dignity, and human rights of the people of North Korea. We will continue to work closely with other governments, international organizations, and NGOs to address human rights violations and abuses perpetuated by the regime. We will maintain our support of NGOs working to improve human rights in North Korea. And we will keep funding Korean language radio broadcasting for the same purposes, and we will soon announce a special envoy for North Korean human rights.

As we enforce sanctions, we are open to talks with North Korea, but we are not interested in half measures. We do not intend to reward the North just for returning to the table. We will not give them anything new for actions they have already agreed to take. And we have no appetite for pursuing protracted negotiations that will only lead us right back to where we have already been.

We and our partners have a more ambitious agenda for any future talks. Such talks must lead to irreversible steps by North Korea to denuclearize. This, in turn, would lead us and our partners to reciprocate in a comprehensive and coordinated manner. Full normalization of relationships, a permanent peace regime, and significant energy and economic assistance are all possible in the context of full and verifiable denuclearization.

In the meantime, we will undertake the necessary defensive measures to protect our interests and our allies. North Korea’s ongoing threatening behavior does not inspire trust, nor does it permit us to sit idly by. Our partners in the region understand that a nuclear North Korea has far-reaching consequences for the security future of Northeast Asia. North Korea’s continued pursuit of its nuclear ambitions is sure to elevate tensions on the Korean Peninsula and could provoke an arms race in the region. This would serve no nation’s interests – not ours, not Japan’s, South Korea’s, China, nor Russia’s and nor, might I add, North Korea’s.

Our success in putting this resolution into action will also have implications beyond North Korea. It will demonstrate to other countries with nuclear ambitions, such as Iran’s, that we can and will impose costly penalties for those who violate international agreements and undermine global security. And it will give us a blueprint for how to manage any similar challenges that might arise in the future.

So our policy is clear. North Korea knows what it has to do: return to denuclearization talks and fulfill its commitments under the 2005 joint statement to abandon all nuclear weapons and existing nuclear programs and return at an early date to the nonproliferation treaty and to IAEA safeguards. The path is open, and it is up to North Korea to take it.

Thank you very much.

QUESTION: Thanks. Madame Secretary, the North Korean representatives today spoke just behind us over there and said that the Six-Party Talks were dead; there is no way they’re coming back, and that whatever we have to offer them in terms of incentives is nothing new to them, and they won’t accept it.

The foreign ministry at the same time issued a statement with actual attacks and insults personally aimed at you. I wonder whether you think that perhaps the time has come to replace the Six-Party framework with perhaps a broader framework. You just suggested that there’s a broad consensus today here about what to do with North Korea. And since China has been reluctant to put it – amend the resolution so far, what would you want them to do when you meet with them on Monday and Tuesday in Washington?

Oh, and one more: Aren’t you exhausted?

SECRETARY CLINTON: (Laughter.) Aren’t you?

QUESTION: I am. That’s why I’m asking.

SECRETARY CLINTON: Well, first, let me say that China has been very vigorous in working with us in support of full implementation of 1874. Just as we have, they created an interagency task force which is working with our own people. There has already been a meeting in Beijing, and I said, there will be a follow-on meeting in Washington.

The Chinese have been very supportive in our efforts to deliver a strong message to North Korea and to other nations that they expect, as we do, that the international community will enforce 1874. They played a very helpful role in the matter of the North Korean ship that was on its way to Burma.

In addition, today, the Six-Party members who were present, with the exception of North Korea, reiterated their commitment to this process and made it very clear that there is no place to go for North Korea. They have no friends left that will protect them from the international community’s efforts to move toward denuclearization. So I think it’s fair to say that not only were Russia, China, Japan, and South Korea very strong in making the points which they did this morning, but those points were echoed by so many of the ASEAN members and other regional partners.

So the message is coming out loudly and clearly to North Korea. And I don’t think we’ve seen at all the way this will eventually develop. I think we’re just still at the beginning of determining how they’re going to respond.

QUESTION: What framework (inaudible)?

SECRETARY CLINTON: The framework is the Six-Party Talks.

MR. KELLY: Next question (inaudible).

QUESTION: Madame Secretary, what evidence do you have of Burma’s cooperation in enforcing the UN Security Council resolution? How did your talks with Burmese officials go last night? And most importantly, how do you reconcile your appreciation and gratitude that they are promising to enforce that with your two days of public, strong comments about concerns of military and even nuclear cooperation between Burma and North Korea?

SECRETARY CLINTON: Well, we’ve expressed that very clearly and forcefully, but I do think there is a positive direction that we’ve seen with Burma, both in the already existing cooperation they showed with respect to the North Korean ship, in their statements to us and others that they intend to do their part to enforce 1874. Now, obviously, we have to see that unfold, but that’s never happened before, and we’re very encouraged by that. At the same time, we know that there has been cooperation between North Korea and Burma in the past, and we are going to be vigilant to make sure that it doesn’t occur in the future.

I was not part of any talks. Others in our Administration were, and we made it very clear, both privately and publicly, that there are expectations on our part that Aung Sun Suu Kyi be released unconditionally, that there begin a process of release of political prisoners, that the election scheduled for next year be open and fair and transparent and credible. And that view was echoed by many people in the room. It was not just a U.S. view. It was very widely and, I must say, heart – it was really expressed from the heart by so many people.

So we hope that there is going to be recognition on the part of the Burmese leadership that they have more to gain by joining the international community and by effectively taking care of their people and putting Burma on the path to democracy. We don’t expect to see a change overnight, but we’re – it’s better to have those positive statements than the negative ones. So we think that gives us at least something to work with.

QUESTION: (Inaudible.)

SECRETARY CLINTON: Right. And I spoke to foreign ministers in the area, asking their help in speaking to their Burmese counterpart. And they did so, and whether or not it was a proximate cause, shortly after, the ship turned around.

QUESTION: (Inaudible) from (inaudible) in Asia. I just wanted to clarify, when you said U.S. will take any defensive measurements, what exactly that mean? Is it going to be like U.S. ready to start a war with North Korea at any time? And how ASEAN, especially in Myanmar, is going to pick on that?

SECRETARY CLINTON: No. But I wanted to make very clear that the United States does not seek any kind of offensive action against North Korea. We have said that over and over again. The North Koreans said in a meeting today that they’ve been subjected to nuclear weapons on the Korean Peninsula aimed at them. That hasn’t happened for decades. So I think they are living in a historical time period that doesn’t reflect today’s realities.

We are very open to a positive relation with North Korea on the condition that they denuclearize. But if they refuse to do so, as they have in the last months, and refuse to follow the obligations they themselves signed up to in 2005 and -06, then our allies in South Korea and Japan and other countries in the region begin to worry about what North Korea’s intentions are. And we want to make clear that the United States will continue to work for the defense of allies like Japan and South Korea. And that’s unfortunately our obligation, one that we will be serious in fulfilling. But it’s not directed in any offensive manner against North Korea.

We also wish to avoid an arms race in Northeast Asia. If the North Koreans are going to continue to test nuclear weapons and their missiles, then other countries are going to start saying, well, we don’t know what they’re going to do, we’d better start taking care of ourselves and doing that and to have that capacity.

We think that would be a terrible mistake. So we’re trying to make clear that we will protect and defend our allies, but we still hope that there is an opportunity to work with North Korea toward denuclearization.

MR. KELLY: Okay, thank you.

SECRETARY CLINTON: Thank you.

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North Korean Exports Total 1.13 Billion USD in 2008 (Institute for Far East Studies)

According to a report released by the Korea Trade-Investment Promotion Agency (KOTRA), mineral products again topped the list of DPRK exports, accounting for 41.3 percent of goods sent out of the country last year. The KOTRA report, “2008 DPRK Trade Trends,” states that the North’s 2008 exports, totaling 1,130,213,000 dollars, increased by 23 percent over the 918.77 million USD-worth of goods exported in 2007.

With the exception of plastic and wooden goods, North Korean exports grew in all areas. Mineral products accounted for 41.3 percent; non-ferrous minerals made up 16.8 percent, textiles accounted for 10.6 percent; chemical plastics made up 7.6 percent; electrical and electronic machinery made up 7 percent; and animal products accounted for 3.6 percent.

Mineral goods were up 33.5 percent over last year, recording sales of 465.44 million USD. This sector has shown continuous growth over the last five years. In 2004, trade in these goods brought in 152.28 million USD; in 2005, 243.66 million USD; in 2006, 244.43 million USD; and in 2007, 349.58 million USD.

Since 2003, North Korea has concentrated on invigorating the light-industrial sector, and has emphasized the export of manufactured goods. However, last year, exports of mineral products and non-ferrous minerals combined to make up a total of 58.1 percent of all exports; the North has been unable to restructure its export sector or satisfactorily boost light-industrial manufacturing.

North Korea’s imports grew as well, to more than twice that of exports. Bringing in goods worth 2,685,478,000 USD, imports grew by 32 percent over the 2.023 billion in imports during 2007. In 2008, mineral products accounted for 25.9 percent of imports; fibers accounted for 11.9 percent; electrical and electronic machinery, 11.5 percent; processed food items, 8.8 percent; chemical and heavy industrial goods, 7.5 percent; and non-ferrous minerals, 6.6 percent. Import of fibers, processed food, and mineral products grew, while the import of animal products, vegetable products and automobiles fell.

Crude petroleum, the North’s largest import item, was imported exclusively from China, and was up 46.9 percent (414.31 million USD) over 2007 (281.97 million USD). However, due to the loss of other sources of fuel, overall imports of crude grew by a mere 1 percent.

Import of grains fell in 2008, recording only 86.24 million USD; a fall of 25.6 percent from the 115.86 million USD in grain imports during 2007. KOTRA explains that due to instability in the grain market, imports from China of rice and barley were halted in April, while corn imports were halted in August.

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U.S. Lawmakers Urges To Re-list Dprk as State Sponsor of Terrorism (Xinhua)

WASHINGTON – U.S. Senate on Wednesday called for the Obama administration to assess the possibilities of relisting the Democratic People's Republic of Korea (DPRK) as a state sponsor of terrorism.

The Senate on Wednesday discussed two amendments dealing with the DPRK and the State Department's State Sponsors of Terrorism list on the National Defense Authorization Act.

The first amendment, which was adopted by a vote of 66-31, called on the Obama administration to submit a report within 30 days to assess the DPRK's behavior since it was removed from the State Department's State Sponsors of Terrorism list.

The assessment should include an evaluation of any evidence that the DPRK has "engaged in acts of terrorism or provided support for acts of terrorism or terrorist organizations," according to SENATUS, a website specializing in coverage of the Senate's daily activities.

"If the report finds evidence that North Korea has in fact provided support for terrorism activities, they should immediately be relisted on the State terrorism list," said the report.

Under the six-party talk's framework which characterized with " action for action," on October 11, 2008, following Pyongyang agreed to all U.S. nuclear inspection demands, the Bush administration responded by removing the DPRK from the terrorism blacklist.

But voice asking to put the DPRK back on the list has been surging inside the United States since Pyongyang conducted an underground nuclear test on May 25 and subsequently fired at least seven ballistic missiles.

Pyongyang also boycotted the six-party talks on its nuclear program.

Responding to Pyongyang's behaviors, the Obama administration has decided to extend economic sanctions by prolonging the national emergency on the DPRK and has vowed to enforce sanctions against Pyongyang set in the 1874 UN Security Council Resolution.

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U.S. worried about regional arms race due to N. Korea (Yonhap)

PHUKET – U.S. Secretary of State Hillary Clinton criticized Thursday what she called North Korea's anachronistic claim aimed at justifying its nuclear ambitions.

"I think they are living in a sort of time period that doesn't reflect today's realities," the secretary said at a press conference after a session of the ASEAN Regional Forum (ARF) on this Thai resort island.

North Korean delegates claimed Pyongyang has been subjected to threats by U.S. nuclear weapons deployed in South Korea, a false charge since all tactical U.S. nuclear weapons were removed from the peninsula in the early 1990s, Clinton said.

She added the U.S. is "very open to a positive relation with North Korea" on the condition that it is denuclearized.

"But we are not interested in half measures," she said.

The U.S. diplomat also expressed worries about a possible regional arms race because of North Korea.

"North Korea's continued pursuit of its nuclear ambitions is sure to elevate tensions on the Korean Peninsula and could provoke an arms race in the region," she said. "This would serve no nation's interests."

Clinton reaffirmed that Washington is ready to provide defensive measures for its regional allies such as South Korea and Japan.

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US Ready To Execute Contingency Plans After Kim Jong-il's Death (Yonhap)

WASHINGTON – The United States has come up with scenarios to cope with any contingencies in North Korea after leader Kim Jong Il's death, the commander of the U.S. Pacific Command said Wednesday.

"We are prepared to execute a wide range of options in concert with allies in South Korea and in discussions through (the Department of) State, which would have the lead, with countries in the region, and internationally if necessary," Adm. Timothy Keating said at a news conference at the Pentagon. "I don't think it is axiomatic that the departure of Kim Jong Il means a national security crisis. We'd hope it wouldn't. But we are going to be prepared if it does mean that."

Keating's remarks come amid allegations that Kim Jong Il has been pushing ahead with nuclear and missile tests to pave the way for a smooth power transition to his third and youngest son Jong-un, 26, after he apparently suffered a stroke last summer.

"What would happen if and when he cedes control or is no longer capable of exercising control? Don't know," the commander said. "But I can tell you that we have plans with the United States Forces-Korea and others in place if the president tells us to execute those plans in the event of some uncertain succession in the North."

The commander made his remarks as U.S. Secretary of State Hillary Clinton met with her counterparts from South Korea, China, Japan and Russia, members of the six-party talks on ending North Korea's ambitions, in Phuket, Thailand, on the sidelines of the ASEAN Regional Forum.

On the Thai resort island, Clinton expressed the U.S. intent to normalize ties with Pyongyang "if they will agree to irreversible denuclearization."

Otherwise, the top U.S. diplomat warned, the reclusive communist state "will face international isolation and the unrelenting pressure of global sanctions."

Pyongyang has said it will boycott the multilateral nuclear talks unless the U.N. apologizes for the sanctions imposed for its recent nuclear and missile tests.

Keating said he was not sure about the North Korean leader's health and possible successor.

"The facts as I know them are fairly limited. He has clearly suffered some change of health. Is it the result of a stroke? Is that change the result of a stroke? Is there some larger issue at stake? I don't know," he said. "He's a different man today than he was a year ago, physically, in appearance. As to his mental acuity, I don't know. As to the plan for succession, I don't know."

On allegations that North Korea is cooperating militarily with Myanmar, Keating said, "If it is, in fact, Burma that is receiving goods and assistance from North Korea, that's against -- that violates United Nations Security Council Resolution 1718. And we, along with the international community, would be very concerned if that is, in fact, occurring."

Clinton Wednesday expressed "growing concerns" over "military cooperation between North Korea and Burma, which we take very seriously," hinting at the possible transfer of nuclear and missile technology to Myanmar, formerly Burma.

A North Korean cargo ship, possibly on its way to Myanmar, returned home recently after a pursuit by U.S. Navy vessels operating under an interdiction mandate imposed recently by the U.N. Security Council Resolution 1874, which was adopted in early June after North Korea's second nuclear test on May 25.

The resolution bans the North from any further nuclear and ballistic missile tests and imposes financial sanctions, an overall arms embargo and cargo interdictions to head off the proliferation of weapons of mass destruction by the North.

Under the resolution, the U.N. Security Council slapped fresh sanctions on North Korea last week by listing five North Korean officials and as many North Korean firms subject to a travel ban and asset freeze for their involvement in nuclear and missile development programs.

Korean Peninsula Today, 14 July 2009

China lukewarm on 5-way meeting without Pyongyang (Yonhap)

SEOUL – China wants to focus diplomatic efforts on brining North Korea back to the six-way talks on its nuclear program rather than holding a separate five-way gathering without the communist ally, according to Beijing's top nuclear envoy.

"We will maintain the six-way format," Chinese Vice Foreign Minister Wu Dawei tersely told reporters here Monday when asked if China supports the five-way gathering sought by Seoul. Wu was coming out of talks with Seoul's top nuclear negotiator Wi Sung-lac and Vice Foreign Minister Kwon Jong-rak.

He reaffirmed Beijing's position that it will seek the denuclearization of the North through dialogue and peaceful means, but declined any further comments.

Wu, who chairs the six-way disarmament talks, arrived in Seoul on Sunday for a three-day stay as part of a rare regional tour that also took him to Russia, the U.S., and Japan.

Wu is unlikely to travel to North Korea during his ongoing trip, South Korean officials said. He leaves Seoul on Tuesday.

Seoul has been pushing for a five-way meeting with China, the U.S., Russia, and Japan amid North Korea's boycott of the six-way talks.

South Korean officials emphasized that holding the five-way event would be "better than doing nothing," saying it would set the stage for the five nations to demonstrate unity on North Korea and discuss ways to resume dialogue with it.

They said the ASEAN Regional Forum (ARF) to be held next week in Phuket, Thailand, may provide a chance.

"China maintained a prudent stance on five-way consultations," a South Korean foreign ministry official said after a closed-door meeting between the nuclear envoys. "The two sides agreed to continue study and consultations on the issue."

It was their second meeting in a month following talks in early June in Beijing.

The official said that the two sides had "frank and in-depth" consultations but that no immediate breakthrough is expected in the current deadlock.

"China seems to have felt the need for more communications with other nations after North Korea conducted a nuclear test and test-fired missiles," he said. "I think the focus (of Wu's tour) was to listen to the opinions of other nations."

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Kim Jong Il, Confirmed To Be Sick With Pancreatic Cancer (YTN Cable TV - original in Korean)

North Korea's National Defense Commission Chairman Kim Jong Il has been reported to have pancreatic cancer besides [his] previously known stroke.

Related ROK and Chinese intelligence personnel reported that Chairman Kim Jong Il is sick with pancreatic cancer and that this disease is threatening Chairman Kim's life.

The period of Chairman Kim's diagnosis of pancreatic cancer was reported to be around the same time that [he] was identified as having had a stroke last year.

Beijing medical sources stated that [Kim's] chances of survival would not exceed five years at the maximum, as pancreatic cancer is usually discovered in its last stage and considering Chairman Kim's old age.

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Skepticism Greets Media Report on Kim's Health (Voice of America News)

A South Korean television station reports that North Korean leader Kim Jong Il has pancreatic cancer, and that his illness is life-threatening. YTN television says its report is based on information obtained by South Korean and Chinese intelligence officials.

However, it is far from certain such reports can be considered reliable, says former CNN correspondent Mike Chinoy, author of Meltdown: The Inside Story of the North Korean Nuclear Crisis. “The way information leaks out of South Korea is very prone to manipulation."

"You have the South Korean intelligence service, which is highly politicized, which has a conservative bent," says the expert with the California-based Pacific Council on International Policy. "Clearly, they know a lot, but they have a long track record of manipulating what they know for their own political purposes. These leaks tend to come to South Korean media who lap them up uncritically, put them out, then get picked up by the international media and take on a life of their own when it’s very unclear that there is any substance to it.”

Mr. Kim's health has been a focus of speculation for the past year after he reportedly suffered a stroke. He disappeared from public last August for several months. North Korean media outlets have strongly denied the reports of Mr. Kim's ill health, and published undated photos and video footage of him.

The status of Mr. Kim's health raises the issue about his succession in the communist dynasty, and who will control the country's nuclear weapons programs. Recent media reports said Mr. Kim named his youngest son, 26-year-old Kim Jong Un as his successor. In April, he promoted his brother-in-law Jang Song Thaek to the powerful national Defense Commission.

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S. Korea has 'no information' on Kim Jong Il's reported pancreatic cancer (Yonhap)

SEOUL – The South Korean government has no information on North Korean leader Kim Jong Il having pancreatic cancer as reported by a local broadcaster Monday, officials said.

"This morning, there was another report about Chairman Kim Jong Il's health, mentioning a particular illness. With regard to today's report, so far, I have no information," Unification Ministry spokesman Chun Hae-sung said in a press briefing.

Citing unidentified intelligence sources in Seoul and Washington, the cable news channel YTN said Kim, 67, was diagnosed with pancreatic cancer around the same time he is believed to have had a stroke in August last year.

The report, quoting medical sources in Beijing, said the illness was "life-threatening." Kim may not live more than five years, given the high mortality rate of pancreatic cancer patients and his old age, it said.

An official from the National Intelligence Service also said he was "unable to confirm the report."

Medical specialists in Seoul say it is impossible to judge from photographs and videos whether Kim is indeed suffering from the reported new illness. In the latest video image released last week, filmed during a memorial service for his father and North Korean founder Kim Il Sung, Kim's hair was thinner particularly on the top of his head and his build more gaunt than in early April. Such signs have been said to stem from the stroke and diabetes, which Kim has long been known to have.

"Just with the way he looks, we don't know whether it's pancreatic cancer," Park Se-hun, a cancer specialist at Samsung Medical Center, said. One can lose hair and weight from the side effects of chemotherapy, but those symptoms are not limited to pancreatic cancer," he said.

Kim's health condition is at the center of international media attention, being a decisive factor in what happens to the communist country if he dies without publicly naming a successor.

Kim is rumored to have internally named his third and youngest son, Jong-un, to succeed him. Jong-un, born to Kim's deceased third wife Ko Yong-hui and either 25 or 26 years old, is said to most resemble the leader in temperament and appearance among his siblings.

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U.S. Falls Short of Confirming Reports of Kim Jong-il's Cancer (Yonhap)

WASHINGTON – The United States Monday stopped short of confirming the report that North Korean leader Kim Jong Il suffers from pancreatic cancer and may die of the incurable disease in a relatively short period of time.

In a daily news briefing, State Department spokesman Ian Kelly said that he has "seen these reports about Kim Jong Il's health," but added, "I just have no further information that we can share with you."

Reports said that the North Korean leader may die within a year or so of pancreatic cancer, which he contracted last summer when he also apparently suffered a stroke.

Fewer than five percent of pancreatic cancer patients are said to live longer than five years.

Footage of North Korean media have recently shown Kim thin and limping, apparently in the aftermath of the stroke, although he had been seen healthy with a potbelly until last summer.

The reports on Kim's health come amid allegations that his third and youngest son, Jong-un, has been named his heir apparent.

Kelly reiterated the U.S. government's practice "not to get into any information that may be obtained though intelligence channels," and admitted "our means of getting information, of course, are very limited" since there are no diplomatic ties.

The spokesman, however, said that Washington has been closely consulting "on a bilateral basis, both with South Korea and with China," on Kim's health.

The possibility of new leadership does color North Korea's refusal to address its nuclear and ballistic missile ambitions through the six-party talks, he said.

"We have real concerns about North Korea's proliferation activities, about their plans to develop nuclear and ballistic missile technology," he said. "So, of course, we're concerned about any stories of political changes in Pyongyang."

Allegations are that North Korea's recent provocations, including its second nuclear test in three years and missile launches, aim to smoothen the process of power transition to 26-year-old Jong-un.

The North's nuclear and missile tests resulted in a strong U.N. Security Council resolution that bans the North from any further nuclear and ballistic missile tests and imposes financial sanctions and an overall arms embargo.

"And we have some very serious concerns about their actions, specifically actions that run counter to various U.N. Security Council resolutions, their refusal to address these concerns with the international community, most specifically through the six party talks," Kelly said. "And, of course, we have a process in place so the leaders in North Korea know that there is a consequence for these kinds of actions that are provocative and unduly raise tension in Northeast Asia."

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Kim Jong-il's Death 'Could Lead to Power Struggle' (Chosun Ilbo)

A power struggle could erupt in North Korea following the death of leader Kim Jong-il between his son and heir apparent Jong-un and his brother-in-law, intelligence services here speculate. The National Intelligence Service told a recent session of the National Assembly Jang Song-taek, the purported no. 2 man in North Korea, director of the Workers' Party administrative department and member of the National Defense Commission, will lead a power struggle.

The NIS said it seems certain that power in North Korea will be handed down to a third generation to Kim Jong-un. But that is expected to result in a weak power structure given Kim Jong-il's current ill health and unstable political and economic factors in the regime. Chances are that Jang and his followers could try to seize power from Kim Jong-un and his faction, it speculated.

Jang is currently helping smooth Kim junior's succession to power but apparently supported Kim's eldest son Jong-nam for the leadership at first.

The NIS said another possibility in case Kim dies before the succession has been firmly cemented is a collective leadership of party and military.

The NIS points at Kim Kyong-hee, Jang's wife and the Kim senior's younger sister, as another guardian of Kim junior.

It says Kim Kyong-hee stopped engaging in public activities after September 2003, when she was head of the Workers' Party light industry department. She had treatment for hypochondria and alcoholism. An NIS official said, "Kim Kyong-hee has been playing the role as a guardian for Kim Jong-un since she resumed her public activities as director of a party department on June 7."

The NIS predicts that Kim Jong-un will officially be declared his father's successor in 2012, the year North Korea has designated as the start of building a "powerful nation," in the latest slogan. It said it will take some time to formalize the succession given Kim Jong-un's lack of political experience and problems at home and abroad.

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Kim Jong Il Gives Field Guidance to Newly-Built Taedonggang Tile Factory (KCNA)

Pyongyang -- Kim Jong Il, general secretary of the Workers' Party of Korea and chairman of the National Defence Commission of the DPRK, gave field guidance to the newly-built Taedonggang Tile Factory.

Being briefed on the factory in front of a big map showing its panoramic view, Kim Jong Il went round its interior and exterior to learn in detail about the construction of the factory and production there.

Looking at the structures where a high level of quality has been ensured in construction and watching the production processes from where various kinds of quality building materials are being churned out without let-up, he expressed great satisfaction over the fact that the soldier builders have built the modern factory in such a manner as to let it win the admiration of the posterity. He highly appreciated their feats.

It is a very gratifying that the factory has established a production system strictly relying on locally available raw materials, he said, adding that the successful endeavors being made by all domains of the national economy including the metal industry to put them on a juche basis fully reflect the unshakable faith of the Korean people to build a great prosperous and powerful nation on this land by their own efforts, resources and technology without fail.

Looking at tiles and ceramic tiles of various sizes and colors for diverse use, he was very pleased to see the officials, workers and technicians of the factory mass-producing quality building materials in the spirit of devoted service for the people. He appreciated their efforts.

He set forth important tasks to be fulfilled by the factory, noting that it has an important role to play in developing the nation's building materials industry.

Every construction site in cities and villages requires more quality building materials, he said, underlining the need for the workers of the factory to effect a fresh turn in the production to satisfactorily meet the increasing demand for building materials.

He stressed the need to actively apply advanced technology and steadily boost the level of technical skill of workers in order to steadily improve the quality of building materials which play an important role in ensuring high quality of structures and making cities look more beautiful.

The completion of the second-phase project would help turn the factory into a large building materials production base which produces varieties of modern building materials, he noted, indicating an orientation and ways for completing the next-phase project earlier than scheduled.

He had a photo session with labor innovators of the factory.

He was accompanied by Kim Ki-nam, secretary of the WPK Central Committee, Pak Nam Gi and Jang Song Thaek, department directors of the C.C., the WPK, and KPA Generals Hyo'n Ch'o'l-hae and Ri Myo'ng-su.

Kim Jong Il's last reported public appearance was at the Ku'msusan Memorial Palace

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Cyber Sleuths Still Stumped By Latest Hack Attacks (JoongAng Ilbo)

Was North Korea behind the recent cyber sabotage or not? South Korea's top spy agency was still trying to answer that question yesterday [12 July].

In a press release issued Saturday [11 July], the National Intelligence Service said it has yet to reach a conclusion on whether North Korea was responsible for hacking attacks that paralyzed key South Korean and U.S. Web sites last week.

"We're undertaking a close and thorough investigation, bearing in mind that we have several pieces of evidence that North Korea is behind these cyber attacks," the statement read. "But we haven't reached a final conclusion that the attacks were North Korea's doing."

The agency's statement came less than 24 hours after local media reported that the agency had briefed legislators on the National Assembly's Intelligence Committee on evidence of North Korea's involvement. According to committee members who were present at the meeting, the spy agency said that North Korea had ordered a military research institute in June to "destroy South Korea's puppet communications networks in an instant."

Committee members also said the intelligence agency mentioned the presence of North Korean agents in Beijing and Shenyang in China, where they have set up overseas bases for cyber terrorism.

The intelligence agency's assessment last week left local politicians divided, with the ruling Grand National Party supporting the finding and the main opposition Democratic Party blasting the agency for taking hasty action based only on circumstantial evidence.

The agency's Saturday statement followed the South Korean government's announcement that it could not establish a technical foundation to finger North Korea for cyber terrorism.

Hwang Chul-joong, director of the network policy bureau at the Korea Communications Commission, said at a press briefing Saturday that North Korea had not been awarded an IP (Internet protocol) address by the Internet Corporation for Assigned Names and Numbers, an international agency that coordinates unique Internet addresses around the world.

"And thus North Korea can't possibly be mentioned as the origin of IP addresses of hackers," Hwang said. "And hackers never leave their traces online anyway."

Hwang later qualified his remarks by saying he didn't mean to completely rule out the possibility that North Korea is the culprit.

"North Korea doesn't have its own IP address, but it could still borrow another country's IP," Hwang said. "One can assume the North could have done that to carry out these attacks,"

According to the Internet Assigned Numbers Authority, North Korea's country domain is ".kp" and Jan Holtermann, head of the European unit of Pyongyang's Korea Computer Center, is listed as the technical contact in Berlin.

Cyber attacks subsided over the weekend and Web sites previously under siege were working normally yesterday. South Korean authorities were busy analyzing 27 "zombie" computers, or the ones that had been infected with malicious code and had been the source of the distributed denial-of-service, or DDoS, attacks.

Police will try to determine the origins of the malicious code by tracing the Web sites they had visited and files that had been downloaded.

An official with the Cyber Terror Response Center at the National Police Agency said there's no concrete evidence at this point that North Korea is responsible.

South Korean officials from intelligence, communications and investigation sectors will gather for a meeting today for the first time since the cyber attacks began last Tuesday.

According to a prosecution source, officials from the National Intelligence Service and Korea Communications Commission will be joined by their prosecution and police counterparts for a meeting at the Seoul Central District Prosecutors' Office.

They are scheduled to share their information on the cyber attacks and discuss a coordinated response to the sabotage.

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N. Korea Sends More Workers to Kaesong Despite Stalemate (Yonhap)

SEOUL – North Korea has recently dispatched 700 new workers to South Korean firms at an industrial park on its soil, businessmen said Monday, amid a stalemate in government-level negotiations over the joint venture.

The move raised questions about the intentions of North Korea, which has clouded the future of the last remaining inter-Korean venture with a demand for steep wage and rent hikes there.

Two South Korean businessmen who operate factories at the park in the North's border town of Kaesong said about 700 North Korean workers were newly dispatched to South Korean firms there last month, and more were expected this week.

"The North side is telling us it will continue to supply labor," one businessman who owns a clothing firm said, asking to remain anonymous. His factory received 50 workers, some as young as high school graduates, increasing its work force to 350.

But Unification Ministry spokesman Chun Hae-sung said the newly-arriving workers were replacements, not reinforcements, after some employees left as part of regular rotations.

"The employees were redeployed within the existing work force," Chun said in a briefing.

About 39,200 North Koreans work at the park that hosts 109 South Korean firms, according to the latest ministry data available.

Ministry officials could not say whether Pyongyang's latest action meant North Korea intends to continue to develop the joint park or was a face-saving measure preceding another hardline action, such as expelling South Korean firms who refuse to meet its demands on wage and rent hikes.

The joint park has been seen by outsiders as a rare source of hard cash for North Korea's frail economy, providing more than US$26 million in wages last year. Some analysts say, however, that Pyongyang is willing to risk economic losses to drive home its political messages.

Government-level negotiations made no progress, with the latest round held on July 2 ending without even scheduling the next meeting. North Korea demanded payment for a 50-year lease be raised to $500 million, scrapping a 2004 contract in which South Korean developers paid $16 million.

Pyongyang also refused to allow access to a detained South Korean engineer. The Hyundai Asan Corp. employee was taken custody in March on accusations of criticizing the North's political system and trying to persuade a local female employee at the joint park to defect to the South.