[Cankor] Report #252

[cankor at cankor.ca]

Dear subscriber,

Welcome to issue #252 of the CanKor Report.
CANKOR LAUNCHES FUNDRAISING CAMPAIGN

The Canadian International Development Agency (CIDA) has informed CanKor 
that due to competing priorities it will not be renewing its funding 
when the current 2.5-year arrangement runs out in June. Having provided 
essential financial support to help CanKor get established over the past 
five years, CIDA believes CanKor has made a useful contribution to 
greater awareness and understanding of DPRK issues internationally, and 
hopes that other CanKor subscribers who value this service will find 
ways to put it on a sustainable, long-term footing.

CanKor wishes to thank CIDA for its generous support. We have also been 
pleased over the years to gain the support of our numerous subscribers, 
some through modest financial contributions, others through their 
positive comments and moral support.

Just shy of CanKor’s 5th birthday, we are launching a fundraising 
campaign to help keep CanKor alive. CanKor #1 was sent out on 25 July 2000.

We will attempt to raise the $30,000 necessary to cover operating costs. 
This does not cover the website or the Virtual ThinkNet, for which we 
hope to raise additional funds. Each week we will report to you on the 
progress made towards the $30,000 and encourage those who have not done 
so to make a contribution.

Since we do not operate from the profit motive, we do not wish to 
deprive any interested subscriber the opportunity to receive CanKor free 
of charge. However, we do ask you to consider paying a voluntary 
subscription fee, or to make a donation in any amount you can afford.
Suggested donations:
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We wish to thank you in advance for your generosity.

QUIDNUNC
Kenneth Quinones and an anonymous former resident of Pyongyang offer 
answers to the questions, HOW DO TEENS REBEL IN NORTH KOREA? IS THERE 
ROCK AND ROLL?
Kevin Wright and Quinones give their take on the origins of Jagang and 
Ryanggang Provinces.

This week a reader asks, “If the 6-Party talks were successful and the 
DPRK gave up its nuclear programme, and if the USA negotiated a peace 
treaty, would we not be stuck with supporting and thereby strengthening 
a regime that severely violates human rights?”
Send your replies of 150 words to editor at CanKor.ca.

If you have other questions that may stump or amuse or intrigue our many 
subscribers and contributors, we'd like to hear from you.

The CanKor team.

For articles not original to CanKor, direct links are available in the 
Contents section, should you wish to consult the originals on the 
internet. If the links no longer function, you may refer to the full 
text articles appended to the issue. For back issues, archives and other 
content, please visit our website: http://www.cankor.ca
*************************************************
CANADA-KOREA ELECTRONIC INFORMATION SERVICE

CanKor # 252

Friday, 9 May 2006
*************************************************

Last September, the US Treasury launched an action against the Banco 
Delta Asia in Macau related to alleged DPRK counterfeiting and money 
laundering, and sanctioned six North Korean trading companies for 
engaging in proliferation activities. In response, the DPRK has 
withdrawn from further participation in the Six-Party Talks. And a 
shadow has been cast on the credibility of businesses operating in the 
DPRK.

This week’s edition of CanKor features a conversation with three 
business people undaunted by recent events.

“By engaging in legitimate business and utilizing a code of ethical 
conduct as Phoenix and Daedong Credit Bank do, they show that one can be 
moral and still make a profit,” says Richard Barr, Director at Citadel 
Advantage. “On a humanitarian level, increasing business in the DPRK 
creates employment which clearly reduces poverty and hunger.”

Using adjectives such as “secretive”, or “reclusive” with regards to the 
DPRK perpetrates an air of mystery and obfuscation, says Nigel Cowie, 
General Manager of Daedong Credit Bank. “Our aim is to de-mystify all of 
this, and just get on and do successful business in an ethical, 
transparent way.”

“Engagement through trade and diplomatic contacts brings about 
interaction, and a better understanding of a country's way of life and 
belief system; it also brings about growth and prosperity,” says Ken 
Frost, Executive Director of Phoenix Commercial Ventures. “We believe 
that legitimate businesses working with reputable organizations should 
not be ashamed of their work... We are proud to have developed and 
implemented a code of ethical conduct.”
*************************************************

1. LEGITIMATE BUSINESS WITH DPRK PROMOTES ETHICAL CONDUCT
Original interview with Nigel Cowie, Ken Frost and Richard Barr, 
copyright CanKor

QUIDNUNC: Readers ask and respond to common and uncommon questions
1. How do teens rebel in North Korea? Is there Rock and Roll?

2. When and why did the DPRK carve two new remote northern border 
provinces, Jagang and Ryanggang, out of the centuries-old Pyongan and 
Hamgyong provinces?
*************************************************

THE CANKOR INTERVIEW: Conversation with Nigel Cowie, Ken Frost and 
Richard Barr

*************************************************

1. LEGITIMATE BUSINESS WITH DPRK PROMOTES ETHICAL CONDUCT
Original interview by Miranda Weingartner, CanKor, 31 May 2006

CANKOR: Nigel Cowie, Ken Frost, and Richard Barr, would you please 
introduce yourselves for our readers?

KEN: Hello, my name is Ken Frost (MA FCA) I am a chartered accountant 
with over twenty years international experience of FMCG industries, 
consumer electronics, rough diamond distribution and the internet. I am 
now based in London, and am an Executive Director of Phoenix Commercial 
Ventures Ltd (www.pcvltd.com) and Hana Electronics JVC. I also own and 
run a suite of websites under the “Living Brand” label, which can be 
accessed via www.kenfrost.com. In January 2006 I was ranked 11th in the 
Financial Power List 2006 compiled by Accountancy Age. This lists the 
top 50 'most influential names to look out for' in the world of finance.

NIGEL: And my name is Nigel Cowie. My background is in banking, having 
spent 11 years working for HSBC in Asia before setting up and becoming 
GM of what is now Daedong Credit Bank (see www.pcvltd.com for details), 
a majority foreign-owned joint venture commercial bank in Pyongyang, 
DPRK, in 1995. I am based in the DPRK, and have been since the bank's 
establishment. I am also a director of Phoenix Commercial Ventures Ltd, 
and chairman of two of the joint venture companies that Phoenix is 
incubating in the DPRK - one is the one Ken mentioned, Hana Electronics, 
the other is Sinji Group.

RICHARD: Hi, I'm Richard Barr and I'm one of the Principal Associates 
and a Director at Citadel Advantage (http://www.citadeladvantage.com/).

CANKOR: Whenever I broach the subject of commerce and the DPRK, most 
people chuckle. And yet here you are conducting business in the DPRK. 
What kind of business do you practice?

KEN: Phoenix Commercial Ventures is a venture capital company that, in 
simple terms, acts to marry investors with investment opportunities in 
the DPRK (Democratic People's Republic of Korea) enabling them to take 
advantage of the economic reforms that are taking place there. Phoenix 
is owned and run by four experienced professionals, who are based in 
London, Paris and the DPRK.

We maintain an office in Pyongyang, almost the only European company to 
do so, and operate with the following specific aims:
-- Identify commercially viable investment projects in the DPRK, on a 
case by case basis
-- Identify reliable local partners for all forms of business in the 
DPRK, either trade or investment
-- Seek overseas investment sources for such projects
-- Minimise the risk in such projects, by taking responsibility for 
supervision of the local set-up procedures and management of the projects

We have 50% shareholdings in two businesses; Hana Electronics (a 
consumer electronics company) and Sinji Software (a software developer 
and pc reseller). We are also involved with discussions with other 
investors, and local organisations, with a view to developing other 
businesses. Details of which will be announced in due course.

NIGEL: As well as the Phoenix business which Ken has addressed quite 
comprehensively, perhaps I can tell you a little about Daedong Credit 
Bank. We are providing commercial banking services for the foreign 
business community - this includes foreign companies and their Pyongyang 
rep offices, as well as other joint ventures, foreign individuals and 
some relief organisations. The range of banking services is not that 
complex, partly because of infrastructure issues, e.g. communications, 
and because of the lack of normal reciprocal correspondent banking 
arrangements with overseas banks; so there is no electronic banking, 
credit cards etc. However, we provide a stable, reliable service, a 
vital piece of the infrastructure jigsaw which facilitates 
foreign-invested businesses.

People often assume that it is impossible to get your money out of the 
DPRK - either in payment for goods or as repatriation of profit. This is 
incorrect. In fact it's a lot easier to get money out of the DPRK than 
it is out of many other Asian countries.

RICHARD: At Citadel Advantage, we're a specialist firm specifically 
covering operations risk, AML activities, payments, liquidity and 
treasury systems who provide services relating to the design, 
functionality, risk mitigation, and operation (including payment flow 
control and liquidity management) of Payment Systems and associated 
activities. Naturally this includes policy and compliance. Our 
relationship with Phoenix and Daedong Credit Bank leverages our 
expertise and assists in bringing the financial sector of the DPRK in 
line with international best practice and compliance standards.

NIGEL: I'm very pleased and looking forward to working with Citadel. DCB 
is the only bank in the DPRK with a resident foreign manager, and I 
think we have role, amongst others, in providing a unique opportunity of 
being a conduit to foreign expertise in our particular field.

CANKOR: Would you call it successful?

KEN: Without a doubt it is successful. Hana is making a profit and is 
growing, and Sinji in the first quarter of this year has opened four 
shops in Pyongyang which have conducted brisk business.

NIGEL: Yes, Daedong Credit Bank is also successful, even though we have 
experienced our share of difficulties and challenges in our 10 years - 
mainly, I would add, as a result of external factors, such as the 
liquidation of our original JV partner, Peregrine Investments Holdings 
Ltd, who went spectacularly bust in 1998. Our customers withdrew almost 
all their money from the bank in one or two days, and the fact that we 
were able to pay them all cemented the bank's excellent reputation.

RICHARD: That's an interesting question. For us, the question of success 
cannot be answered as a simple Yes or No but rather incrementally. I 
think I can say that we're working towards success.

NIGEL: Good point Richard. With regard to the work we are doing with 
Citadel, this is bound to be a long-term project, and we have to go as 
fast or as slow as local circumstances and sensibilities permit. 
Advising, or rather, making suggestions, on best practice, will not go 
anywhere if we go in telling people we know best and 'you've got to do 
things this way'; it's more a case that if people want suggestions on 
what the international market expects in a given field, e.g. banking, 
then they will come to know that we will be there to give it to them. 
That takes time, but I have no doubt that we will be successful.

It's also a practical question - people sometimes need to know what 
procedures to adopt to ensure they are not excluded from international 
relationships or blacklisted. Sometimes this is just a difference in 
practice, understanding or culture, and bridging that gap satisfactorily 
is a different kind of success.

CANKOR: Are there opportunities to make money in the DPRK?

KEN: Of course there are, if you have a well researched business plan 
and are a professional with reputable/professional local contacts. It is 
not difficult to set up shop, if you approach the DPRK with a well 
thought through serious business proposal.

The DPRK is a market of 23 million people with an enormous business 
potential. The country has an abundance of mineral wealth, other natural 
resources and a highly educated, well-trained and motivated workforce. 
Sectors such as mining, energy, agriculture and IT are open to foreign 
investment; indeed the DPRK Government is actively encouraging foreign 
investment these areas. As with other previously closed economies, such 
as Central and Eastern Europe, early entry means a lack of competition 
and the potential for a close working relationship with the Government. 
Phoenix Commercial Ventures is uniquely positioned to assist foreign 
businesses and investors with investments and business opportunities in 
the DPRK.

The DPRK has developed diplomatic and trade/business relationships with 
a.o.; Italy, the Philippines, Australia, Great Britain, Germany, Canada, 
Luxembourg, Greece, Brazil, New Zealand, Kuwait and most recently the 
European Union. There has also been a fundamental improvement in the 
friendly ties within the Korean peninsula. These positive changes have 
led to improvement in the business and investment climate. The DPRK is 
undertaking small experiments with free market economy principles that 
would have been unthinkable a couple of years ago.

There are individuals and businesses that are seeking to invest in DPRK, 
Phoenix is working with a number of investors (individuals and 
businesses) on a number of investment proposals. Investors are in the 
main from Europe, China, Canada and ROK. There is also a $100M 
investment fund being set up for investors for indirect and direct 
investment into DPRK. All investments are equally well received, so long 
as the investor is considered to be legitimate and serious. DPRK is 
experienced enough to know that there are some Westerners who assume 
that DPRK is "primitive" and a soft touch.

Nothing annoys the DPRK more than being treated in this way. Make sure 
that you have a clear idea of what you want to do before making an 
approach, do not waste people's time with badly thought out plans and 
ideas. The outlook is very positive. DPRK is looking to emulate the 
Chinese in terms of economic growth. As evidenced by Kim Jong Il's 
recent trip to China to see for himself the economic changes that have 
taken place there.

I would also note the ongoing de facto unification of ROK and DPRK - a 
prime example of the movement to reunification being the Kaesong 
project. Eleven firms are currently operating in the industrial complex 
with nearly 7,000 employees. It is envisaged that by 2012 there will be 
700,000 people working there.

RICHARD: It's hard for me to add to Ken's statements. He's answered the 
question beautifully.

NIGEL: Quite so!

CANKOR: what are the safest sectors for foreign investment or trade?

KEN: The main sectors that are active at the moment are:
-- Technology - which has been given high priority by the government 
this year
-- Mining - DPRK is richly endowed with minerals; gold, coal, talc, 
copper, zinc etc.
-- Oil - A British oil company has an exclusive 20-year Petroleum 
Agreement for co-operation with the Government of DPRK in all the 
country's onshore and offshore potentially hydrocarbon-bearing basins.
-- Infrastructure development - banking, electricity, transport etc. The 
development of the ROK/DPRK rail link, which may be used by former ROK 
President Kim Dae-jung when he visits Pyongyang in June this year, is a 
good example.

RICHARD: Of course I'm partial to the financial sector. As investment 
flows into the DPRK, banking itself will be a prime opportunity for 
investment.

NIGEL: Ken is right to highlight the fact that the DPRK is rich in 
minerals, and there's an obvious opportunity in renovating the old 
machinery and getting production going again. But the country's other 
great asset is its people. There is near 100% literacy, and people are 
keen to learn - which I know from experience they do with astonishing 
speed, whether it's a foreign language or a complex technical operating 
manual - that surely bodes well for any form of high tech or IT investors.

CANKOR: How would you measure success in the DPRK?

KEN: The same way that you would measure success, in business terms, 
anywhere else in the world; i.e. profits and levels of return on investment.

RICHARD: Ken is fully correct in his answer but I want to move beyond 
the business measurement for a moment. Success in this case can also be 
measured in terms of job creation, increased opportunity and in terms of 
trade benefit. For the financial sector, full success will happen when 
the world financial markets and regulators accept DPRK banks as 
compliant with standards involving AML and Operations Risk. This in turn 
will spur investment at a higher rate, which in turn creates more 
opportunities which will logically lead to Ken's measures of success; 
that of profits and high levels of return.

NIGEL: I wish more people thought as responsibly and as long-term as 
you, I fully agree with those comments.

CANKOR: Would you measure success in business with the DPRK the same way 
you would measure success for ventures in other countries?

KEN: I would. However, maybe Nigel and Richard would like to offer a 
less “accountant's mindset” perspective on this question though?

RICHARD: There are many factors at work and the world at large does not 
look at all countries venture potential in the same light. No two 
countries are created identical and in order to measure success, a 
country's entire profile and potential must be examined.

NIGEL: Ken, the Accountant, has given a procedurally correct response! 
And on the whole, my answer would be yes to the final question, although 
there may be different ways to reach that success that work in different 
countries, as Richard suggests. Yes, the measure of success is whether 
your investment - let's say it's a JV - is profitable; but how do you 
get to that stage of making it profitable? By having an efficient 
operation, where you are utilising the competencies of all involved - 
the local knowledge of local staff, the international experience of the 
expats, for example - by building an operation where people work there 
because they like it; these kinds of concepts should be the same with a 
foreign investment project wherever it is.

Nonetheless, there is also an element of 'country satisfaction' in 
succeeding in business in the DPRK. Most people (foreigners, that is) 
scoff at the thought of making a successful business in the DPRK - 
chuckle, I think you even said earlier:) - so when you do succeed, it's 
doubly satisfying, because you've proved those people wrong - and proved 
to other people who might indeed be considering investing - that it can 
be done.

And, slightly off subject, I'd like to pick up on something Ken said 
about 'accountant's mindset'. A lot of people I've come across seem for 
various reasons to play up the mysteriousness of the place; media 
descriptions frequently include words like 'secretive', or 'reclusive', 
presumably because that makes good copy; other business people seem 
deliberately to sow confusion and mystery, presumably to highlight their 
own expertise. Our aim is to de-mystify all of this, and just get on and 
do successful business in an ethical, transparent way. Working with 
Citadel is part of that process, but the 'accountant's mindset' approach 
is equally so - i.e., never mind all this mystery and obfuscation, just 
apply normal, objective methods that you would use anywhere else.

KEN: Exactly!

CANKOR: What is phoenix commercial ventures and Daedong Credit Bank's 
response to those who say engagement with the DPRK helps prop up a 
heinous regime?

KEN: Unlike a Disney movie the world cannot be neatly categorised into 
good vs. evil or black and white. Like it or not, the world does not 
operate like that. There are many countries in the world that have less 
than perfect (from the Western perspective) ways of working, human 
rights records, legal and political systems. However, we (the West) are 
quite happy to interact with them and conduct business with many of 
these countries. There are countries in Asia Pacific that do not have 
good human rights records, from a Western perspective, yet most people's 
homes in the West contain consumer electronics devices and clothes 
manufactured in these countries. Only when people have stopped buying 
their products from these countries will I be prepared to accept a 
lecture on morality from them!

I would also note that we believe that legitimate businesses working 
with reputable organisations should not be ashamed of their work. We are 
happy to publicise our operations in the DPRK, and are proud to note 
that we have developed and implemented a code of ethical conduct. We 
also note that DCB is one of the first banks in the DPRK to devise and 
implement an anti money laundering policy. Details of both are available 
on our website.

RICHARD: By engaging in legitimate business and utilizing a code of 
ethical conduct as Phoenix and Daedong Credit Bank do, they show that 
one can be moral and still make a profit. On a humanitarian level, 
increasing business in the DPRK creates employment which clearly reduces 
poverty and hunger.

NIGEL: There has been discussion in some countries of late about which 
approach to take to the DPRK - there are those who advocate stifling the 
country in every field and cutting it off from the rest of the world, 
with the ultimate aim of 'regime change'; while others propose 
integrating the country with the rest of the world, and encouraging all 
attempts to engage in legitimate business and be a responsible member of 
the world community. The former approach shows a level of ignorance 
about the DPRK, and I am a supporter of the latter.

Talking of job creation, one of the companies we are involved with, Hana 
Electronics, employs over 150 people - these are people who may well not 
be working otherwise. I have been to the factory, the working conditions 
are good and the atmosphere cheerful - much better, I suspect than in 
factories in some of the countries Ken is alluding to.

CANKOR: In a seminar CanKor gave at the University of British Columbia, 
one undergraduate student put up his hand and said: "I'm just an 
undergrad, so maybe I'm missing something, but if we want peace on the 
Korean Peninsula, why aren't we flooding the country with Playstations 
and Gucci purses?" What would your response be?

RICHARD: Bingo! Give that student an "A". While I wouldn't say Gucci 
purses myself, he does understand the very real benefits of trade & 
opportunity in a society.

NIGEL: Well, I've heard surprisingly similar views expressed in the DPRK 
- not about the Playstations and Gucci purses of course, but that if 
certain countries changed policy on the DPRK, signed a peace treaty and 
normalised relations, their companies could get in and start investing 
and making profits, and everyone would be happy.

KEN: Engagement through trade and diplomatic contacts brings about 
interaction, and a better understanding of a country's way of life and 
belief system; it also brings about growth and prosperity. That, surely, 
is a good thing?

CANKOR: Have you seen improvements in the DPRK as a result of commercial 
engagement?

KEN: The establishment, and planned growth, of the Kaesong Industrial 
Zone is a good example of what can be achieved by commercial engagement 
on a large scale. On a more local scale one of our companies, Hana, is 
marketing itself via advertisements etc. This is something that would 
have been unheard of a few years ago.

NIGEL: Yes indeed - advertising, branding, the concept of a service 
economy, competition between companies and the awareness of the 
importance of service, high quality standards (back to Hana for a 
second, who instigated a 6-month, no questions asked guarantee on their 
products) and the importance of creditworthiness are all being 
understood now as important concepts.

RICHARD: Ken has certainly made the case with his answer. I can give one 
more example: an actual private bank in the DPRK. Daedong Credit Bank 
mere existence is proof of improvement. Add to that that DCB has asked 
Citadel Advantage for assistance in fostering International Best 
Practice and Compliance.

CANKOR: How significant is the black market in the DPRK? What 
role/purpose does it serve?

KEN: I cannot comment specifically on this in relation to the DPRK. 
However, I would note that black markets are a manifestation of people's 
desire to trade, to make a profit and to better themselves; mankind is 
at heart 'capitalistic'.

NIGEL: That's a good 'theoretical' answer. We don't involve ourselves in 
illegal activities, period!

RICHARD: I'll take Ken and Nigel's lead on this.

CANKOR: The US Treasury Department actions are justified by the Bush 
Administration as targeting criminal elements such as drug trafficking 
and counterfeiting. Do you think it is an effective tool to fight the 
black market and other illicit activity in the DPRK?

KEN: The responsibility for regulating any black market activity within 
the DPRK, in so much as it relates to the domestic economy, is the 
responsibility of the government of the DPRK; it is not a matter for 
third parties. With respect to the accusations levelled by certain 
parties within the US administration, relating to possible counterfeit 
notes etc that affect trade with the DPRK, we have written a paper on 
that and can if desired provide that as an attachment. [See CanKor 
Report 248]

RICHARD: It is safe to say that Black Market Activities exist the world 
over. The real question is not one of whether a black market exists but 
rather does it help or hurt a society. As Ken said, the responsibility 
is in the hands of the government. Where we as individuals can make a 
difference is in our behaviour and personal relationships.

NIGEL: I was understanding your previous question to refer to the black 
market within the DPRK, and this one to refer to accusations of 
international illegal activities. For the former case, quite agreed with 
Ken, this is a matter for the government of the DPRK, not for third 
parties. For the latter case, we have indeed written a number of papers 
on the subject, and one of the conclusions we reached was that when 
allegations are made, they should be proven, the guilty parties named 
and shut down, end of story, just like anywhere else.

But you do raise a rather interesting theoretical point for 
contemplation there. Presumably if you are a policy-maker in a country 
that wants to thwart the DPRK, you would encourage the black market 
within the DPRK as a way of undermining central control; but similar 
activities, or the suspicion of them, when carried out internationally, 
are denounced vigorously - I suppose it depends where you are sitting.

CANKOR: Considering there are so many other countries in which the 
circumstances are so much more inviting for foreign investment, why 
engage in business with the DPRK?

KEN: Profit is the reward for taking risk. DPRK is considered to be a 
higher risk than other areas, and as such offers higher profits, if the 
business plan has been properly thought through and the business 
opportunity well researched. DPRK represents one of the last "virgin" 
economies of the world, and as such provides an unparalleled opportunity 
for business professionals who know and understand the risks, the people 
and the country. For me it's a no-brainer.

RICHARD: with two words; Need and Opportunity. If I can make a 
difference in understanding and at the same time enjoy the 
opportunities, it's as Ken says "a no-brainer."

NIGEL: The DPRK was, by its own admission, very badly affected by the 
collapse of its major trading partners, the Soviet bloc, and for some 
years, was in a sort of limbo with regard to economic relations with the 
rest of the world. Now the authorities there have determined that they 
have to deal with the rest of the world, and have adopted a policy of 
trading with any country that does not oppose them. That means that now, 
more than ever, the DPRK is ready and willing to deal with "western" 
countries; this coupled with the new concepts we talked about earlier 
relating to the service economy, the skill and ingenuity of its people 
and unexploited mineral wealth and other opportunities discussed 
earlier, does indeed make it a "no-brainer".

CANKOR: Gentlemen, we thank you for this conversation.
*************************************************

QUIDNUNC
In this section, CanKor invites readers to contribute questions, 
answers, or rebuttals. Must be under 150 words and may be edited for space.
*************************************************
HOW DO TEENS REBEL IN NORTH KOREA? IS THERE ROCK AND ROLL?
*************************************************

The playing of Rock and roll, and all its variations, in public is 
banned, BUT if you live close to the Chinese border, you can hear Yanji 
radio stations play western music. Also, CD's, video, etc. flow into 
North Korea through unofficial "official channels," i.e. travelers 
returning home from abroad bring CD, DVD, video tapes, etc. to the DPRK 
to facilitate "the study of English and other foreign languages." 
Pyongyang's bowling alley has a sound proof basement where youths gather 
to chat and listen to music of all kinds.

Karaoke is very popular and current South Korean and even Japanese 
popular music, including rock and roll, is available upon request. 
Direct access to the internet is impossible, but if the family has 
"connections," access to all kinds of music is very possible. Dress and 
hair style adhere to acceptable norms, but the telling of outrageous 
jokes and stories compensate for such restrictions. Teens date with 
relative ease in Pyongyang, so long as parents believe they are 
attending study groups or attending cultural events.

"Kibun" (good feelings) houses provide all kinds of entertainment, 
including sexual. The key is to avoid revealing one's "human urges" in 
public. Keeping it shielded (under cover) from sight condones just about 
everything! Short visits to Pyongyang do not facilitate access to such 
information. One must be in North Korea in a "working" status to see 
life as it is actually lived. Surprising though it may be to many, North 
Koreans actually live lives quite similar to South Koreans and other 
human beings.

C. Kenneth Quinones, Ph.D., Professor of Korean Studies, Akita 
International University, Japan (formerly North Korean desk officer at 
the US State Department).
*************************************************

I only know kids in Pyongyang and have known a few families and their 
children over the years. They play around with hairstyles (length of 
hair and style). Platform shoes are fashionable. They experiment with 
calligraphy for their handwriting (as kids do in the west). They play 
skipping rope games, hide and seek (tick stone 123- i.e. hiding and 
getting back to the base before whoever is ‘on’). They play number 
games, word games much as kids do in the west (from basic 
“stones-scissors-paper” too much more complicated games).

There are certain North Korean tunes that appeal to them more than their 
parents. There is no rock and roll. There are no ‘garage bands’. There 
are occasionally non professional singers who are recorded at home and 
they become well known ‘on the street’. South Korean soaps have made 
their way into North Korea and have a limited impact.

By the way the story of the new badge of Kim Jong Il’s son being worn is 
completely ill-founded and whoever the reliable source is needs his/her 
eyes tested.

Former Pyongyang resident
*************************************************
WHEN AND WHY DID THE DPRK CARVE TWO NEW REMOTE NORTHERN BORDER 
PROVINCES, JAGANG AND RYANGGANG, OUT OF THE CENTURIES-OLD PYONGAN AND 
HAMGYONG PROVINCES?
*************************************************

The Korean People's Army controls the two "new" provinces Jagang and 
Ryanggang. These provinces are the location for numerous military plants 
and facilities housed deep within the region's rugged mountains. The 
forests and rich sources of gold provide the KPA with steady income. 
Someday the US Treasury Department may realize that there are ways for 
the DPRK to earn foreign currency legally, particularly by supplying 
large amounts of high grade timber to China from these two provinces and 
a steady supply of gold to the gold markets in London and Zurich. The 
profits are then invested in the London and other stock markets with the 
assistance of investment firms based in London and other European 
cities! Visits to Linjiang, China (located on the geographical center of 
the China-DPRK border) and chats with DPRK investment agents are the 
sources for these insights.

C. Kenneth Quinones, Ph.D., Professor of Korean Studies, Akita 
International University, Japan (formerly North Korean desk officer at 
the US State Department).
*************************************************

Jagang and Ryanggang were formed in 1949 and 1954 respectively (gleaned
from Wikipedia, so perhaps should be taken with a grain of salt).

Kevin Wright, Canada
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WHAT NOW?
If the 6-Party talks were successful and the DPRK gave up its nuclear 
programme, and if the USA negotiated a peace treaty, would we not be 
stuck with supporting and thereby strengthening a regime that severely 
violates human rights?

[Answers should be e-mailed to: editor at CanKor.ca]
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End CanKor # 252

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Associate, Nautilus Institute