Showing posts with label sanctions. Show all posts
Showing posts with label sanctions. Show all posts

Thursday, February 24, 2022

Kim Jong-un's First Decade in Power - The Next Decade

Kim Jong-un with his wife, leading DPRK officials up Mt. Paektu in 2019. Image source: KCNA.

 

Introduction

Throughout this series, I have tried to draw from numerous sources to provide an accurate accounting of the first decade of Kim Jong-un’s rule and to limit the number of my own opinion-based comments. For this final article, opinion is about all that anyone could offer. Informed opinion, but opinion and supposition, nonetheless.

People have offered predictions about North Korea since its inception. That there was no way it could survive the Korean War. That Kim Il-sung would end the nuclear program. That Kim Jong-il would falter in the face of famine and the whole system would collapse. That Kim Jong-un couldn’t handle power at such a young age or that war is inevitable.

Those predictions were all wrong. At the same time, plenty of other predictions have been right. That the government would survive the famine because it didn’t care about cutting less desirable citizens off from food. That the country would achieve nuclear miniaturization. That it wouldn’t stop illicit trade activities regardless of the United Nations and especially regardless of the United States.

So, this ‘look to the future’ opinion piece is just as likely to be wrong and to be right and to have areas of grey as the future unfolds and becomes the present. With that caveat, I will attempt to look at the trends of the last decade, the changes, and what’s stayed the same from Kim to Kim to Kim to inform my own views of what the next decade of Kim Jong-un’s rule may look like.

 

COVID and the Economy

The most pressing issue that Kim Jong-un will have to resolve is that of economic contraction due to his lockdown of the country over COVID-19 fears. After two years of very limited trade and internal quarantine measures, the economy is suffering more than it has at any other point during his rule and the food situation, in particular, has reached a critical point.

Although illicit activities have continued unabated, bringing in hundreds of millions each year, there is little indication that those funds are being used to prop up the economy; rather, they are most likely being used to maintain Kim’s lifestyle, provide gifts to the elites to keep their loyalty, and to continue the country’s military buildup.

As such, legal trade must resume before a crisis becomes inescapable, leading to future disease outbreaks (such as from tuberculosis), a limited famine, or even popular unrest. Kim will also have to consider finally allowing vaccines into the country as COVID-19 stops being a pandemic and transitions to an endemic global illness that will be around for years.

Leaving no opportunity behind, the COVID lockdown actually provides Kim the opportunity to gain greater control over the broader economy and over the economic activities of the people as the ‘border blockade’ has made it even more difficult for unapproved cross-border trading to continue. This places the state in a better position to control and monitor what goods come into the country, and it has set up at least two decontamination centers to help facilitate the resumption of trade: one in Sinuiju and one at the Port of Nampo.

A test run at the Sinuiju center recently took place on January 17, 2022, when a train entered North Korea from China after a two-year border shutdown resulted in an 80% drop in trade with the country. The outcome of the train visit and how well the government thinks the Sinuiju facility handled the operation may allow for a slow resumption of trade in the near future.

One twist in North Korea’s economic story has been how Kim, in the early years, allowed limited reform and the markets to continue to grow, but under COVID he has reverted back to more anti-market policies, desperately trying to reign in free market activities and strengthen the state’s central control over the economy. How this struggle against marketization will play out is anyone’s guess, but one complication that Kim is currently having to deal with and will continue to need to contain in future years is the “tyranny of growing expectations”.

As people become accustomed to a certain living standard, they begin to expect more from their government and begin to expect that life in the future will be better than what they have today. In a growing globalized world, this works itself out through expanding free markets and liberalized governments. But in North Korea and other closed states in the past, it can turn into a major threat to the regime as the government cannot compete with the gains made by marketization, and as the people realize that the outside world is much wealthier and freer than what they have at home.

Kim Jong-un made improving living standards and access to consumer goods a key pillar of his rule since the beginning. Promising no more ‘belt tightening’ in 2012, the government is today telling people that they should expect food shortages until at least 2025. After the moderate but measurable rise in living standards of the last 10-15 years, if the government isn’t able to maintain upward growth, then the popular pressure of growing expectations can serve to destabilize the regime.

Should this meld with other pressures against the current system, an inescapable domino effect may occur in the future, leading to the end of the state. This has been one of the biggest threats to the Kim’s and it is something they have managed to avoid thus far, but no one knows where the ultimate tipping point lies.

Regardless of economic reforms or further ossification, one thing, of course, that continued throughout the pandemic and will continue well into the future is North Korea’s illicit activities. Whether it’s selling counterfeit goods, money laundering and theft, or busting sanctions with oil, fish, luxury goods, and other commodities, the state will keep relying on these ill-gotten millions each year to try to stabilize the system and keep the elites in lockstep with Kim Jong-un.

 

Weapon Development

Missile development is the next most important issue as Kim Jong-un works toward realizing his “wish list” as laid out in his speech to the 8th WPK Congress in January 2021. This list includes everything from developing improved ICBMs to hypersonic glide vehicles to tactical nuclear bombs and other weapon systems.

Kim Jong-un spent much of 2021 testing multiple weapons and showed off a wide range of equipment (some known, some new) during the “Self Defense 2021” exhibition. He also began 2022 with a series of seven missile launches that included its longest-range missile test since 2017.

Since the failed summits, North Korea has embarked on a series of technology demonstrators like the hypersonic glide vehicles (showing off two different designs) and rail-based missile launches. Having declared the country’s nuclear deterrent complete, Kim is going to need to continually develop new delivery methods and to improve his nuclear arsenal’s survivability, as it currently relies on a limited number of large, slow-moving TELs that cannot be easily replaced. This helps to explain the proliferation of weapon designs as well as radar and improved air defense systems.

I believe that future nuclear tests are unlikely, but they can’t be ruled out as Punggye-ri still has two functional tunnels. And after North Korea implied that the self-imposed moratorium on testing would no longer be adhered to, it does place future tests on the table.

 

In terms of sanctions, I think that it is unarguable that they have been an abject failure. Upwards of two hundred thousand citizens are still locked in prison camps, the country has tested nuclear weapons and created miniaturized warheads, North Korea has missiles that can reach the United States, and the Kim family is still firmly in control. However, one reason why sanctions have failed is that the enforcement of those international sanctions is rooted in each individual UN member state’s own interpretations of the sanctions and their own willingness to enforce them.

China has been integral to North Korea’s ability to skirt sanctions and carry out illegal activities. And while China occasionally gets tired of Pyongyang’s behavior and temporarily gets stricter with enforcement, the existence of North Korea is within their own national self-interest. This means that China will never do anything that might directly cause the collapse of the current government short of North Korea declaring war or causing significant damage to China itself.

Therefore, absent greater international pressure on China to plug the enforcement leaks and loopholes, China will continue to be North Korea’s lifeline and Kim Jong-un will continue using this to his advantage.

Until China becomes willing to strictly enforce sanctions or until either the United States or South Korea becomes willing to cave on major issues (all unlikely scenarios), North Korea is going to keep testing weapons. The goal of complete, verifiable, and irreversible denuclearization (CVID) is now completely unrealistic unless the United States is willing to go to war, which it hasn’t been despite the murder of multiple US military personnel and the assassination of multiple South Korean officials over the decades.

In my view, the only viable option is that of arms control, limiting the number of warheads and their yields, limiting the range of missiles, and limiting the numbers of launchers North Korea can have in exchange for substantial sanctions relief.  However, the human rights situation complicates matters as does Pyongyang’s history of ignoring agreements.

At least in the near term, we should certainly engage in talks but the longer-term position is likely to be merely “wait and see,” as neither side seems willing or capable of making the difficult decisions or want to risk losing face, and as North Korea hasn’t been patient enough for slower confidence-building measures prior to more substantial agreements.

 

Human Rights

Domestically, human rights abuses will assuredly continue. Kim Jong-un has shown little inclination to degrade the state’s system of prison camps and he has ramped up internal surveillance to levels not seen since Kim Il-sung.

Although Camp 22 was closed under his watch in 2012, many of the prisoners were merely transferred to other sites, and others are alleged to have been allowed to starve to death to enable the camp’s closure.

In contrast, prisons in Pokchong-ni, Kangdong, Chidong-ri, Yongdam, Nongpo, Chongjin, Hwasong, Pukchang, and others have all seen new construction or renovations to their facilities. Additionally, public executions outside of the prisons, within regular towns and villages, have reportedly not ended and are now carried out for things like watching certain foreign media.

Since coming to power, Kim Jong-un has directed the Ministry of Social Security, Ministry of State Security, the People’s Border Guards, and other relevant agencies to crackdown on defections and unapproved cross-border economic activity. In 2011, 2,706 defectors made it to South Korea. By 2018, only 1,137 defectors were able to make it to the South. However, COVID-19 gave Kim a great opportunity to ramp up the repression of freedom of movement.

Hundreds of new border guard huts and hundreds of kilometers of new border fencing have been erected during the pandemic. While anti-defection measures had been begun prior to COVID, nearly the entire northern border ended up with a double row of electrified fencing since the beginning of the pandemic. Although the ‘border blockade’ is ostensibly to prevent the spread of the virus from Chinese persons and goods illegally crossing the border, it has served to nearly end defections.

In 2021 a mere 63 defectors made it to South Korea.

 

Freedom of expression and thought have also come under greater assault, especially in the last few years, as Kim has solidified his rule and now looks forward to being the only Kim in charge for another generation or two, in the model of his grandfather.

There is no greater threat to a closed society than information and no greater threat to an authoritarian system than individuality. It is said that blue jeans helped bring down communism. This wasn’t because jeans come with guns or brings down economies, but because they became a symbol of capitalism and individuality. While the saying is overly simplistic, that basic article of clothing became subversive and was a reminder that the free world and its values were thriving, while breadlines and secret police were all communism had to offer.

Similarly, North Korea has relied upon the group subsuming the individual. The masses, as a unified whole, are what the North Korean government and society are built upon. The individual only exists as an entity for so long as they give themselves over the larger group and never turn their back on socialism by highlighting their individuality or demanding to be treated as a human being equal to any other.

This feature of all authoritarian regimes, left and right, is relied on to keep the masses in line and curtail any risk of nonconforming thoughts and actions. It is this feature that Kim Il-sung wielded to such a great effect that for a stretch of thirty years, almost no known public demonstrations or other protests occurred.

And after the breakdown of the information cordon in the 1990s, it is this feature that Kim Jong-un must learn to wield again, or else he will have to accept that permanent cracks in the system exist and may one day bring the entire system crashing down.

To this end, more and more effort is being expended on hunting down purveyors of smuggled media material, cell phone tracking and blocking technology has been installed along the entire Sino-DPRK border, and the government has taken greater steps to punish officials and police who turn a blind eye toward or take bribes to overlook illegal activity. Even attacks on everything from non-traditional hairstyles to using foreign slang have been couched in terms of national salvation – of restoring a true socialist community by going after impure, reactionary elements.

Kim Jong-un has even leveraged South Korea’s desires for diplomatic normalization to get the South Korean government to pass laws violating human rights within the ROK merely to appease him. But all that has done is hurt the South’s own legitimacy and standing as a democratic beacon in the region while enabling Kim Jong-un to limit the flow of outside information and culture into the country.

In my view, it’s hard to see a time when this rise in human rights abuses will end so long as the invisible yet existential threat of COVID exists. Of course, the government has never needed a real threat to its existence to lash out at foreign elements within the self-proclaimed racially and culturally pure North Korean community, but COVID happens to be a very real threat and provides an excellent opportunity for Kim to maintain his veer toward greater authoritarianism.

 

Future of Foreign Relations

Between assassinations, further missile and nuclear tests, and a never-ending list of illicit activities, North Korea has become more and more isolated under Kim Jong-un. The government’s anti-pandemic measures have only exacerbated this with the removal of diplomatic and foreign aid staff from the country. But North Korea has still tried to strengthen ties with China and Russia, as well as Eastern European and African countries through the exploitation of DPRK citizens as foreign labor and, occasionally, construction project leaders.

The long and turbid history of North Korea’s interactions with the world has created an unstable environment with little ingrained goodwill or trust among all parties. Its history with the United States has been particularly fraught.

The Clinton administration thought it had a workable deal in the development of the Agreed Framework, but the death of Kim Il-sung and subsequent famine radically altered the world Kim Jong-il was forced to face, and the Bush administration posed a much different threat in Kim Jong-il’s view after North Korea was labeled as part of the Axis of Evil and with the eventual invasion of Iraq. Under Obama, ‘strategic patience’ only allowed Kim Jong-il and eventually Kim Jong-un to continue their military buildup and created no real progress on the diplomatic front. With President Trump, ‘maximum pressure’ was about as unserious a campaign as one could think of. Despite the horrifying bluster with both sides threatening the annihilation of the other, maximum pressure was more like moderate suggestions, particularly as international efforts continued to hinge on China’s willingness (or lack thereof) to enforce the will of the United Nations.

After a year of a new administration under Biden, it has become obvious that the United States lacks the bandwidth to deal with Kim Jong-un. In the face of continual missile tests, failed summits, and mounting geopolitical problems elsewhere, Americans and the international community itself seem to be going numb to Pyongyang.

Launches no longer draw the media attention they once did and South Korea’s official announcements regarding activity at various nuclear facilities have basically become exact copies of each other, with only the dates changed.

In such an apathetic environment, it’s difficult to see how any progress can be made. And as Russia and China continue to serve as lifelines in the face of international will, dealing with Pyongyang can never simply be a bilateral proposition.

Of course, the only reason anyone even cares about North Korea is because North Korea made itself a problem. It has commanded the world’s attention for generations through threats and belligerent actions. Receding into the background is not the Kim way.

Kim Jong-un will eventually do something that catches the world’s eye once again, and we can only hope that the international community is willing to address whatever that is. Ignoring Pyongyang only emboldens the regime. And while there may be no good options currently and although there have been many failures over the years, discussion and diplomacy are still the best policy – even in the absence of grand agreements or apocalyptic threats. 

 

Tomorrow’s Personality Cult

The half-life of the North Korean cult of personality is roughly the reign of one Kim. During Kim Il-sung’s rule over the country, he was a genuinely beloved and respected leader. The cult under Kim Jong-il fell precipitously as upwards of 1 million North Koreans died under his watch, but the state’s system of indoctrination from birth and its security apparatus insured that the cult survived. Under Kim Jong-un, the cult has weakened further, with many young people reportedly not caring about the great ‘Paektu Bloodline’ or his alleged brilliance.

To counter this, Kim has taken multiple steps to shore up the cult, and, assuming he survives another ten years, these steps can be expected to continue as the cult forms one of the ideological pillars for the state’s very existence and must be maintained.

During his first years, Kim tried to solidify his rule by drawing direct comparisons between himself and Kim Il-sung. His appearance, dress, more personable qualities, and even riding around on white horses, all reminded the people that he was not just another leader but was the rightful heir to Kim Il-sung.

Even his ability to complete the country’s nuclear program and bring a United States president to cross the DMZ all underscored the divine blood flowing in his veins. Still, younger generations have been far more concerned with economic betterment and cultural exchanges than they have been with ridged ideologies. And this poses a long-term threat to the government.

Kim has taken the opportunities provided by COVID-19 to try to reestablish a sense of national unity through a shared crisis, and in doing so, has double-downed on the development of his own personality cult. To do this, he has turned the sacrifice of personal liberties into an expression of true patriotism, for only the Kim family, Juche, and the Monolithic Ideological System can save the country.

As part of this, he has attacked foreign cultural influences, particularly that of South Korean music and other entertainment, with a key focus on rooting out these influences from among the nation’s youth. A so-called “thought law” was implemented in 2021 that goes after those using South Korean slang, efforts have been redoubled to punish those watching foreign media, with executions in store for those accused of distributing the material, and even personal fashion choices have been attacked as being anti-socialist and part of the corrupting influence of capitalism.

With the information cordon that so dramatically cracked under Kim Jong-il being reestablished and cross-border travel becoming ever more difficult, Kim Jong-un is working toward rebuilding the ‘hermit kingdom’ of his grandfather, with as many vestiges of western influences wiped out as possible. The end results being a population less susceptible to revolution, greater government control over the people’s daily lives, less market activity, and it has prolonged the longevity of the Kim family’s rule over the country.

 

Succession & Future of Government

With questions about Kim Jong-un’s health dogging his entire reign, and the fact it is known that he has experienced medical emergencies, the matter of succession is more pressing than it otherwise would be for a ruler still in his thirties.

Kim Jong-un has made a series of structural changes to the rules of the WPK that could, theoretically, allow for the future succession of a non-Kim family member. He has also placed his sister, Kim Yo-jong, in positions of moderate official power while giving her substantial practical authority. She appears to be the most trusted person in his orbit and can routinely be seen following behind her brother taking notes and keeping meetings/events on track. Additionally, she has been given more leeway to voice her own views than anyone since Kim Jong-il was still being groomed by Kim Il-sung.

Given that Kim doesn’t have any adult children, killed his half-brother, and his other brother has largely been kept in the background, this points to Kim Yo-jong being the de facto successor in the event of an emergency.

Once Kim’s own children come of age, this is likely to change but for the time being, Yo-jong can be considered to be the second most important person in the country. While she lacks the needed official Party and military titles to take over, what’s important is Kim Jong-un’s faith in her and the fact that she has been able to build her own support base within the Party and even the military.

 

Kim Jong-un will also continue to reform the government and Party to fit the particular needs of his era. Loosening agricultural controls to improve productivity, seeking greater government revenue via market fees/taxes, the further militarization of the civilian police force, and the ongoing shift away from the Songun Policy have all made their mark.

What’s more, is as Kim has replaced older Party apparatchiks and military officers, he has opened up the opportunity to rearrange the inner workings of both organizations to cut down on corruption (which drains money and authority away from the central government), introduce and enforce his own ideological views, and he can gradually set up frameworks to deal with major crises of leadership such as if he became incapacitated or died, as well as to develop a more robust command and control system regarding nuclear weapons.

Trying to understand the decision-making process and the “why’s” within North Korea is often a form of reading tea leaves, but it is my suspicion that the cumulative effect of Kim’s efforts on the structure of the WPK and the military will lead to organizations that, in the end, will be markedly more modern and forward-looking, creating a more viable system for the future.

 

Final Thoughts

Contrary to predictions of the Kim regime collapsing or that Kim Jong-un would be a Western-minded reformer, as Pratik Jakhar has noted, his rule has been “remarkably resilient and consistent. Kim Jong Un has stayed within the confines of the framework established by his grandfather Kim Il Sung and inherited from his father Kim Jong Il. In the process, he has preserved state oppression, class divisions, purges, military adventurism, economic control and mandated glorification of the Kim family.”

Jakhar’s view sums up the last ten years and I believe it is prescience for the next ten years as well.

Throughout this biographical series, we have seen that although Kim has initiated a number of changes, they have been on the periphery and still uphold the core values of the regime. Massive construction projects and megafarms have always been part of Pyongyang’s agenda. The roots of North Korea’s nuclear and ballistic missile programs date to soon after the Korean War and have melded into the national psyche, making their development an integral part of the state’s legitimacy. And there has been no decline in rampant human rights abuses nor has there been a move away from the personality cult.

External forces always elicit responses and policy changes to fit the moment, but they have followed tried and true formulas that have kept North Korea going for 77 years. Meaningful structural changes to the way things are done are never done in haste. What drift there has been over the years since the early days of Kim Il-sung has largely been incremental, with Party hagiographers and archivists taking care to erase any public trace of old policies that are no longer supported by the current ideological flavor.

Over the next decade, Kim Jong-un will undoubtedly face new challenges and will continue to face growing threats from within the country such as information sharing and marketization. But if the last ten years have taught us anything, it’s that he can be relied upon to employ terror tactics within and without, and that he is only open to reform so long as that reform can help ensure the state’s longevity and his premier position within it.

And until China decides to step up its enforcement of international sanctions, there is little reason to believe that things like missile tests, illicit trade, financial crimes, and human labor trafficking won’t continue.

 

~ ~ ~ ~

 

I have scheduled this project to run through to the end of the year, with a new article coming out roughly every 10 days or so. If you would like to support the project and help me with research costs, please consider supporting AccessDPRK on Patreon. Those supporters donating $15 or more each month will be entitled to a final PDF version of all the articles together that will also have additional information included once the series is finished. They will also receive a Google Earth map related to the events in the series, and can get access to the underlying data behind the supplemental reports.

Supporters at other levels will be sent each new article a day before it’s published and will also receive a mention as seen below.

 

I would like to thank my current Patreon supporters: Amanda O., GreatPoppo, Joel Parish, John Pike, Kbechs87, and Russ Johnson.

--Jacob Bogle, 2/23/2022

Wednesday, September 1, 2021

Kim Jong-un's First Decade - Gassing Up the Country

This is the first of the supplemental articles for the Kim Jong-un's First Decade in Power series. It deals with vehicle ownership, the supply of fuel, and sanctions avoidance issues.

Photograph of the Pyongyang-Kwanmun gas station via Wikimapia.

Introduction

I have written about this topic more than once as it intersects with multiple areas of research, but one thing that has been made clear is that the rise of the modern gas station within North Korea and changes toward ‘car culture’ have largely been a product of Kim Jong-un’s rule.

Thanks to the publication of the AccessDPRK 2021 Pro Map and newer Google Earth imagery for most towns in North Korea, I can now provide the most detailed picture yet of the country’s fueling infrastructure; a picture that has been largely painted in Kim Jong-un’s first decade in power.

Of the 157 gas stations that I have found, 149 of them have known construction dates. And of those, 63.8% were constructed since Kim Jong-un came to power. Additionally, four of the six stations whose exact year of construction isn’t known were at least constructed on or after 2012, meaning that two-thirds of all gas stations have been built in just the last decade.

While gas stations may not seem like an important topic, in the context of North Korea, they become a window into the country’s economy and reforms as they sit at the nexus of the growth of vehicle ownership, car culture, fuel imports, and sanctions avoidance activities.

To service an ever-larger vehicle fleet, whether they’re state-owned or private, easy to access fuel needs to be made available. And to keep those gas stations operational, a steady supply of refined petroleum must also exist.

To cover this issue, this article will be broken down into three main topics: vehicle ownership, gas station construction, and fuel supply and sanctions.

 

Vehicle Ownership & Car Culture

This is the Peokkugi I Series from North Korea's own Pyeonghwa Motors. Its design is heavily influenced by the Fiat Doblo. Image via Pyeonghwa Motors sales brochure.

The streets of Pyongyang, a city of 3 million, are famous for not being full. Traffic jams are rare and brief, and most people get around by subway or tram service. Outside of the capital, most people have to walk or ride a bicycle. If they have a few extra won, they can jump on the back of a farming truck or military vehicle to make their way. Long journeys are predominantly taken via train.

So it might be surprising for many to know that North Korea has its own automobile industry, of sorts. While North Korea has been producing various vehicles since 1958, it wasn’t until the 2000s that they started to take the idea of manufacturing non-commercial passenger vehicles seriously. 

Established in 2000 as a joint venture with the South Korean-based Unification Church as part of the South’s Sunshine Policy at the time, Pyeonghwa Motors was meant to usher in a new era of not only economic cooperation between the two countries, but also to help fulfill Pyongyang’s desire to have a robust automotive industry.

Pyeonghwa’s plant in Nampo has a nominal capacity of 20,000 cars a year, yet, in most years fewer than 1,000 vehicles were manufactured. Its peak was in 2011 when 1,820 units were made. And like the products of North Korea’s other vehicle plants, their creations are largely Chinese-manufactured, DPRK-assembled car/truck/bus kits. The few models that are predominantly manufactured within the country are merely modified copies of foreign vehicles and still require many foreign parts.

However, even if North Korea has yet to develop its own truly domestic and indigenous car manufacturing base, tens of thousands of cars, trucks, and buses on North Korean roads come from North Korean factories, and they are in enough numbers as to make up a sizable percentage of North Korea’s entire vehicle fleet. What’s more, the regime has managed to import a number of vehicles over years. Along with the increasing privatization of transportation services (a reported 6,000 taxis are in Pyongyang alone) this has all helped keep urban populations moving.

Regulations were relaxed in 2017 to allow for more car registrations, as most passenger vehicles were still technically owned by state enterprises and lent or leased out. Compared to the annual income of North Koreans, prices are still prohibitively expensive, ranging from $10,000 to $30,000 for most models, but it is estimated that 20% of Pyongyang families now have their own cars thanks to a growing middle class.

As mentioned, an alternative to outright ownership is “leasing” them from a state firm. According to DailyNK, this involves “The owner of the car must pay 150,000 KPW to the enterprise for using their name and to make a working record, and also needs to pay 50,000 KPW each month to the Security Department for a license. In addition, they’ll have to pay more than 300,000 KPW in bribes for various reasons”.

Despite supply challenges and the fact that cars are still a major luxury, the regime has taken steps to normalize driving and to familiarize the next generation with car culture, perhaps in anticipation of broader car ownership in coming years.

In 2017 the government began to build children’s “traffic parks” which are miniaturized city blocks with fake buildings, streets, street signs, and even bridges. Kids are given mock cars to drive (pedal) around with and learn the rules of the road. Most towns have at least one of these parks while a few have had their construction delayed. In total, the AccessDPRK database has located 149 driving parks.

These reforms and other changes also mark a change in ideology, where having your own car isn’t just a decadent part of Western capitalism but can be something to which citizens are implicitly told they can finally aspire to. But to accomplish this, ready access to fuel is needed.

 

Gas Station Construction

This graph shows the number of identified gas stations constructed each year from 2012 to 2020. It is based on the data found within the AccessDPRK 2021 Map, Pro Version

Unlike in basically every other country on earth, getting fuel (gasoline or diesel) in North Korea has typically been restricted to those operating state-owned and military vehicles. People would get rations or would otherwise need to get permission from their factory, farm, or other work unit. From there, the fuel would have been distributed either from basic fuel tanks on site or would need to come from centralized fuel distribution centers that would send out fuel as needed. An example of one of these large depots can be found at 39.094342° 125.615611°.

Every town had fuel, but the concept of a western-style gas station was mostly unknown, and I have only been able to locate 54 in the whole country that existed prior to 2012. While the centralized supply of fuel seems to have been adequate for most of the country’s history, it was simply too complicated and the sites too remote to be responsive to the increase in private vehicle ownership and in taxi and bus companies.

As the graph above shows, and corresponding with Kim Jong-un’s assumption of power, there was a marked increase in the number of gas stations being constructed each year from six 2012 to a peak of twenty-two in 2017. And while the growth rate peaked in 2017, newly built gas stations have shown up every single year. Additionally, many of the older sites have been renovated and expanded within the same time frame.

While the beginnings of vehicle ownership and the establishment of taxi companies began years earlier, there is no debate that this switch to a more modern system of gas distribution has taken hold and was driven by the Kim Jong-un regime.

Of course, this reform wasn’t done altruistically to make driving around the country easier. The state issues permits for gas station construction and state-owned companies have also been involved in the establishment and operation of new sites, likely resulting in considerable annual revenue. One of the most well-known cases of state ownership is the Air Koryo gas station in Pyongyang’s Kangan District.

Since 2015, the state airline has been trying to diversify itself and may operate several others gas stations. They also run a taxi service and a food company. As NKNews notes, Air Koryo is owned by the military and so these businesses are not only an attempt to gain revenue for the government but for the military in particular.

This image shows two gas stations. The smaller one has existed since before 2004 while the larger facility was constructed from 2012-2014. The smaller station only provides fueling services, but the larger station also has a vehicle maintenance facility. Note: the numerous small, temporary structures in the image are related to a major building project on Saesalim Street, Sadong District.

In terms of design, many of the gas stations are stand-alone structures that only provide fuel and perhaps small consumer goods like snacks or phone cards, which most people around the world would find recognizable. Others are part of larger facilities that include vehicle maintenance services for commercial and passenger vehicles.

In a country where most vehicles are still used for industrial purposes (materials transport, dump trucks, etc.) and where constant vehicle maintenance is required, as most vehicles are decades old, clusters of these stations are occasionally created to handle the demand.

An example of this can be seen at the Potonggang Reservoir in Pyongyang where there are three distinct fueling and maintenance facilities next to each other.

However, despite the clear rise in the number of gas stations, a vision of long highways with gas stations dotting the landscape or where there’s one on every corner in town is still a distant one. South Korea has an estimated 11,800 gas stations. Even when considering the South’s larger population and economy, the fact that North Korea has fewer than 200 is a stark reminder of how far the country must go to eventually become a nation that caters to the driver.

There are very few gas stations along the country’s highways. Along the major Reunification Highway, for the nearly 100 km distance between Sariwon and Kaesong there are no evident gas stations. And in the country’s interior regions there aren’t any of the modern sites outside of major towns. Drivers must rely on the old method of getting refueled and would be well advised to carry an emergency supply of gas with them.

Indeed, the decades of fuel scarcity led to the adoption of wood gasification in countless vehicles. And while modern gas stations are spreading, they still remain largely confined to major cities – particularly those cities involved in international trade. The seven cities of Pyongyang (47), Sunchon (10), Rason (8), Chongjin (7), Hamhung (7), Nampo (6), and Sinuiju (6) hold nearly two-thirds of all gas stations in the country.


Fuel Supply, Sanctions, and Sanctions Avoidance

It is important to note that while gas stations have spread around the country, most places still rely on the more traditional way of getting fuel into vehicles. These fueling compounds can be found all over the country and many have been renovated over the years. This implies that the new gas stations built in the last decade have not merely been replacing an existing system, but that they are creating a net increase in demand.

This need for more petroleum supplies has been demonstrated by the expansion of the Nampo fuel terminal and the construction of storage tanks in other parts of the country as well. In Nampo, since 2018 more than 30 storage tanks have been added or are under construction. 

As North Korea lacks any natural oil reserves, the United Nations has placed sanctions limiting how much it can import as a result of its nuclear and missile programs. This sanctions regime only allows for 500,000 barrels of refined petroleum and 4 million barrels of crude oil products to be imported each year.

To get around sanctions, North Korea has been employing ship-to-ship transfers (STS) and then brings their newly loaded vessels into a home port to offload the illegal petroleum products. Each transfer can provide North Korea with anywhere from 500,000 to over 1 million liters of oil (6,289 barrels).

Based on United Nations reporting and using publicly available ship tracking data, there are six primary vessels engaged in STS activities along with several smaller vessels. Each ship can make numerous transfers a year. In 2020, the US found 32 individual instances of fuel being smuggled to DPRK ships within Chinese waters, while the Chinese government was alerted by the UN to 46 instances of smuggling activities via STS.

All of this adds up to a lot of fuel coming into the country. According to the 2020 UN Panel of Experts report, the US estimates that “under the one-third laden scenario, these deliveries would have amounted to almost three times the total cap of 500,000 barrels set in paragraph 5 of resolution 2397 (2017). Under the half-laden scenario, the deliveries would have amounted to more than four times the cap and, under the fully laden scenario, they would have amounted to almost eight times the cap.” (emphases added)

But ship-to-ship transfers aren’t the only way North Korea can get illicit petroleum. There is an aging but still operational pipeline from China that is owned and operated by China National Petroleum Corp. North Korea’s only functional oil refinery, the Ponghwa Chemical Factory, is also located nearby, enabling them to convert crude oil from the pipeline into other needed products.

While China is party to the UN sanctions against North Korea, enforcement of those sanctions is left up to each member state, and the pipeline is not monitored by independent organizations.

In 2016, an estimated 270,000 tonnes (36,800 barrels) of fuel – both gasoline and diesel – was transferred to North Korea through the pipeline according to official Chinese data. A further 520,000 tonnes (70,900 barrels) of crude oil was also sent. However, customs data isn’t always made available and it has been notoriously unrealizable. What’s more, is the pipeline’s ability to transfer not just crude oil but refined products as well. At full flow, it could send eight times North Korea’s annual legal allotment.

2020 report by The Nautilus Institute reveals that oil transfer via pipeline is still ongoing through this COVID-era, even if other import methods have temporarily been restricted. Its authors estimate that crude oil exports by the Dandong-Sinuiju Pipeline from China in 2019 came to 715,000 tons (approx. 5.2 million barrels), but increased those exports to nearly 750,000 tons (almost 5.5 million barrels) in 2020 – far in excess of UN limits.

The current trade restrictions imposed by Pyongyang due to COVID has likely impacted a range of smuggling activities, but it seems rather clear that North Korea has the networks of ships, allies, and infrastructure to routinely surpass international limits.

And the operation of gas stations is one key to realizing that fact.

Satellite imagery exists of many of the gas stations during different phases of construction. Through these images one can see that each gas station typically has 2-4 (sometimes more) fuel storage tanks. But to err on the side of conservative estimates, I will use two tanks as the average.

Using measurements attained from “Wonsan Station #2” at 39.142021° 127.385198°, I estimate that each fueling tank has a capacity to store 7,733 gallons (184 barrels) of gasoline. If we assume that all of the 103 identified gas stations built in the last decade have the same sized tanks, only have two of them, and are refilled only once a month, then the demand for additional fuel products has risen by 19,115,976 gallons (455,142 barrels) each year of refined petroleum. That’s almost the country’s entire legal import limit just to operate these new gas stations and is based on using conservative estimates.

Busier stations will need more. Numerous gas stations have 4+ storage tanks. Some tanks are larger. Therefore, the actual supply needs could easily be greater.

There are still the other 54 older gas stations, there’s still the centralized distribution network that those in rural areas rely on, there’s still the need for aviation fuel, heavy fuel oil, and the need for supplies for their fishing fleet and military vehicles.

Of course, their refinery can produce refined products, but the point is that nearly half a million barrels of gas is now – newly – in demand, a demand that has not been accounted for by adjusting sanctions levels. A demand, it seems, that can only be realistically met through illicit imports.

~ ~ ~ ~

I have scheduled this project to run through to the end of the year, with a new article coming out roughly every 10 days or so. If you would like to support the project and help me with research costs, please consider supporting AccessDPRK on Patreon. Those supporters donating $15 or more each month will be entitled to a final PDF version of all the articles together that will also have additional information included once the series is finished. They will also receive a Google Earth map related to the events in the series.

Supporters at other levels will be sent each new article a day before it’s published and will also receive a mention as seen below.

 

I would like to thank my current Patreon supporters: Amanda O., GreatPoppo, Joel Parish, John Pike, Kbechs87, Rinmanah, Russ Johnson, and ZS.

--Jacob Bogle, 9/1/2021

Saturday, April 25, 2020

UN Report Shows Continued Illicit Oil Imports

Illegal ship-to-ship transfer of petroleum product between the Vifine and New Konk on June 19, 2019. (UN POE report, page 20.)

The 2020 United Nations' Panel of Experts (POE) report on North Korea's illicit trading activities has added further understanding to how North Korea has been able to continue building gas stations across the country.

Back in 2019 I did the first-ever survey (that I'm aware of) of DPRK gas station construction and it showed that at least 74 fueling sites had been built under the rule of Kim Jong Un. I have most recently been able to identify a total of 122 gas stations in the country (built before and since Kim Jong Un).

By examining the fueling tanks at a gas station in Wonsan, we can derive a rough estimate for how much gas would be required to keep all 122 stations operational if they were only required to be refueled once a month.


The tanks, located at 39° 8'32.42"N 127°23'8.17"E, are clearly visible on the Google Earth image dated Jan. 30, 2014. They are each approx. 32 ft long and 7 ft wide. That yields a volume of 1,231.5 cubic feet. For the sake of being conservative and to take into consideration the unknown thickness of the tank's walls, I am going to deduct 10% from that figure (giving us 1,108.3 cubic feet).

The weight of a cubic foot of gasoline is 46.75 pounds, giving each tank the capacity of 51,813 pounds of fuel (or 7,733 gallons at 6.7 pounds per gallon).

Gas stations have a variable number of storage tanks, some only have one and others have four or more. Simply assuming an average of two tanks for each 122 identified station, the country has the need for 1,886,852 gallons of fuel each month. If we use the 42 gallon per barrel measurement, then that's 44,925 barrels of gasoline needed each month, or 539,100 barrels annually just for vehicle fueling. There's still the need for aviation fuel and other petroleum products needed in transportation and industry.

North Korea is limited to importing 500,000 barrels of refined petroleum products each year.

The POE report says that the "aggregate amount of 500,000 barrels of refined petroleum products was exceeded many times over." (page 4). As part of the report, estimates from the United States suggest that North Korea imported anywhere from 3 to 8 times the legal cap (or 1.5 million to 4 million barrels of illegal petroleum).


The amount of petroleum being brought into the country would more than justify the continued construction of gas stations. Looking at fuel prices over time also suggests that the country is able to import (through whatever means) enough product to meet demand.

In Dec. 2018, fuel prices were around 15,000 won ($1.86) per kilogram. According to the most recent market trend report from DailyNK, gas prices had dropped to 11,500 won per kg. ($1.34) in April 2020. This also implies that trade in the most crucial supplies has not been severely affected by the coronavirus measures North Korea has put into place. Most trade has been stopped, but it was never fully ended and illicit activities continue regardless of the reported decline in legal oil imports from China.


I would like to thank my current Patreon supporters: Amanda O., GreatPoppo, Kbechs87, Planefag, Russ Johnson, and Travis Murdock.

--Jacob Bogle, 4/24/2020
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