Kang Sok Ju’s New Posts

Kang Sok Ju has been appointed DPRK Vice Premier and and holding the title 1st Vice President of the DPRK Supreme (Central) Court.  KCNA reported Kang’s appointment as Vice Premier on 23 September.  On 25 September Kang was identified in the latter position when he was reported by KCNA as attending a meeting with China’s Vice Minister of Justice in Pyongyang.

Kang’s  appointment as Vice Premier was part of a DPRK foreign ministry personnel migration.  For a number of years, Kang served as the DPRK’s Senior Vice Minister of Foreign Affairs.  He was replaced by his primary deputy, Vice Minister of Foreign Affairs Kim Kye Gwan.  Kim was replaced as Vice Minister by MOFA Councilor, Ri Yong Ho.  All of these personalities were central players in the DPRK’s interactions with the US and the Six Party Talks.

Kang Sok Ju is Kim Jong Il’s cousin, as well as one of his primary foreign affairs advisers.  Kang worked for a number of years under Kim Yong Nam, current SPA Presidium President, and former Minister of Foreign Affairs and Party International Secretary.

KJI Concerned About “Unrest” in Early February Over Money Crunch (revised 18 April)

Choson Ilbo, citing a story from Open Radio for NK, reports that Kim Jong Il was worried about public discontent at a meeting in early February.

At a meeting on Feb. 2 in which he received a briefing on the progress in the North’s project to earn dollars, Kim said, “If the most important thing is single-minded unity under current circumstances, public sentiment is the very basis of such a unity,” the radio quoted a high-level North Korean source as saying. “If this problem is solved, it will not be as difficult to earn foreign exchange as now,” he reportedly added.

His remarks suggested he, in fact, admitted that he has difficulty raising his own funds and that the North Korean people are agitated.

In early February, officials previously known to earn foreign currency for the regime in the Third Floor, took on a greater prominence in the country’s economic activities.  If this report on KJI’s state of mind is accurate, it may explain reports of the execution or incarceration of Pak Nam Gi, and one of the vice chairmen of the State Planning Commission.

KJI’s concerns about security were likely assuaged.  The Ministry of Public Security was upgraded, and directly subordinated to the National Defense Commission.  The chief of the State Security Department was given a military promotion.  While MPS was already on the fast track for the Supreme Commander’s affections, and U Tong Chuk’s promotion was not entirely unexpected, the lack of any major, and embarrassing, popular revolts may have facilitated, if not ensured, these institutional and career advancements.

KJI’s concerns about earning foreign currency may take more time.  Yonhap, citing sources in Beijing, reports that Office #39 (3rd Floor) deputy director (and KJI high school buddy) Jon Il Chun had traveled to China around 9 April.  He is also, concurrently, President of the State Development Bank and chief executive of DPRK Taephung International Investment Group, acting on behalf of the National Defense Commission.

Jon Il Chun was reportedly leading a delegation to Beijing to negotiate and attract investments in the country.  Mr. Jon was one of the foreign currency-earning technocrats KJI promoted to handle the economic fallout from the 2009 currency redenomination.

Meanwhile, Kyodo reports that the public face of the DPRK Taephung International Investment Group Pak Chol Su (whom one recent report noted does not sport a KJI badge) is talking up Rason, the country’s other ports and other infrastructure repair:

North Korea has launched a five-year, $120 billion infrastructure-building project in eight cities as part of a 10-year plan to rebuild the economy, a manager of a state-run investment group said Friday.

Pak Chol Su, chairman of the Korea Taepung International Investment Group, expressed hope companies from Japan, South Korea and other neighboring countries will invest in the development plan that began this year.

”We believe the plan will lead to the establishment of a Northeast Asian economic community” involving the two Koreas, China, Japan and Russia, Pak said in an interview with Kyodo News in Pyongyang.

Kim Jong Il conducts a field guidance tour of the renovated Hyangsan Hotel in North Pyongan Province in late January 2010. The official on the left is Han Kwang Sang, deputy director of the KWP Financial Planning Department. (Photo: KCNA).

New DPRK Central Court

Over the weekend, Kim Jong-il conducted a guidance tour of the “newly-built” DPRK Central Court in Pyongyang.  General-Secretary Kim visited a historic exhibition and was briefed about the construction of the new court building (s).  He remarked, “that the court has developed into a weapon of class struggle and one of proletarian dictatorship under the wise leadership and meticulous care of President Kim Il Sung.”  Like many practicing attorneys in the West, it is likely this is the closest General-Secretary Kim will be to seeing the inside of a courtroom.

He also said during his visit, “Thanks to the strict enforcement of the Socialist Constitution under the WPK’s leadership a revolutionary system and order have been firmly established throughout the society, the three revolutions, ideological, technical and cultural, made dynamic progress, further augmenting the nation’s political, economic and military potentials and the sovereign rights of the working masses have been most firmly protected.”

There are no known photographs of this visit (as yet).  A new Central Court facility has many implications for Pyongyang watchers to hash out.  The new Central Court building (s) certainly has the fingerprints of Jang Song-thaek.  This blends capital city construction with the internal security apparatus.  The new Mansudae Street apartment complex, the Taedonggang Combined Fruits Farm of the MPS, refurbishment and restaurant additions on Kwangbok Street are all Jang-initiated projects.  They are also likely indications of Mr. Jang’s political clout.

Revaluation Reflux

Photo: Choson Sinbo

In the latest installment of “For the Love of Money“ Choson Sinbo features several stories about the DPRK’s “currency exchange” which may be the closest thing Pyongyang watchers get to an official announcement.  Choson Sinbo carries an interview with Cho So’ng-hyo’n, a senior official of the DPRK Central Ban and reports:  “Denying speculation that this currency exchange action is a step in the direction of a free-market economy, responsible official Cho So’ng-hyo’n stressed that socialist principles and order will be far more solidly cemented in the managing of the economy. He also expressed his opinion that the market’s role will gradually dwindle as the state’s economic capability is enhanced as more domestically-produced commodities are distributed through state-run networks for commerce.”

Photo: Choson Sinbo

Choson Sinbo also reports that prices in the DPRK will revert to July 2002 level.  Mr. Cho also remarked: “The market was utilized as a supplementary means based on the principle of socialist economic management. We believe that, as the capability of the state has strengthened, the role of the market–which has performed its function as a supplementary means–will gradually dwindle.”  Mr. Cho also reports that “that absolute majority of working people, including workers, farmers and office workers have expressed welcome and support saying that the state measure taken this time is most correct, and favorable reactions are being reported.”

Photo: Choson Sinbo

But are there really “favorable reactions?”  Asahi Shimbun citing Seoul-based sources with knowledge of “reports from west European countries’ diplomatic corps in Pyongyang, have also confirmed the existence of information about citizens having staged protests in several places of Pyongyang City. It appears that there have been incidents of some people rebelling against the North Korean authorities’ decision to exchange currency and some angry people protesting.”  There are also reports that some North Korean citizens had insider information prior to the currency exchange policy being announced.

Meanwhile, Choson Ilbo reports that KPA troops posted to the Ministry of Public Security remain on high alert for public protests against the currency exchange.  There are also reports that the recently expired won notes have been found defaced and discarded in garbage heaps outside cities in North and South Hamgyong, as well as outside Pyongsong, South Pyongan.  What’s more State Security Department KPA soldiers stationed along the DPRK-PRC border are under order to shoot North Korean citizens attempting cross the border.

Photo: Choson Sinbo

It is unlikely if public protests will reach a critical mass.  The DPRK internal security apparatus was placed on high alert prior to the announcement of the currency revaluation, and they present as more than willing to react aggressively.  That said, previous popular protests in communist regimes, such as Hungary and the Czech Republic/Slovakia only fomented when the central authorities implemented highly restrictive banking policies.