DPRK daily Oct. 19-20


North Korea threatens South over propaganda balloons
Reuters. 10/19/12 By Jack Kim and David Chance

(Reuters) - Impoverished North Korea threatened on Friday to open fire on South Korea if it allows activists to go ahead with plans to drop anti-North leaflets on its territory, its most strident warning against its long-time foe in months.

Some of the leaflets, printed on plastic bags, will contain $1 bills. As well as the dollars, the bags themselves are said to be prized by North Koreans, many of whom often lack daily necessities.

South Korea's defense minister told parliament that its military would retaliate in the event of any attack.

"If (a North Korean strike) were to happen, there would be a perfect response against the source of the attack," Kim Kwan-jin told a parliamentary committee.

North Korea said that if the leaflets were dropped on Monday, a "merciless military strike by the Western Front will be put into practice without warning", according to state news agency KCNA.


N. Korea levies $160,000 in taxes on 8 S. Korean firms in Gaesong complex
The Korea Herald. 10/19/12

North Korea has unilaterally imposed hefty taxes on eight South Korean firms operating in the joint industrial complex in the North's border city of Gaesong, a Seoul government official said Friday.

"Eight out of 123 South Korean companies in the Gaesong complex were slapped with taxes totaling $160,000," the Unification Ministry official said, requesting anonymity.

Of the eight firms, one was levied $87,000 and another was ordered to pay $30,000, the official said, adding another firm has already paid around $20,000 in taxes to the North.

Pyongyang has also demanded 21 South Korean firms in the joint complex submit several documents related to their accounting practices, the official said, a move seen as preparation for further taxation.

Such moves came after Pyongyang unilaterally revised rules in August on operations of South Korean companies in the inter-Korean complex, which call for maximum fines of 200 times any unreported revenues, scrapping a ban on retroactive taxation, and more detailed documentation of purchases of raw materials and accounting practices, among other demands.

As part of efforts to extract taxes, the North is reportedly threatening a ban on the movement of goods and people in and out of the complex if the taxes are not paid, according to other sources here familiar with the issue.

The joint industrial park in the North's Gaesong opened in 2004 as a symbol of cross-border reconciliation and has been in operation without any major interruptions despite high cross-border tensions between the two Koreas. It was designed to combine cheap North Korean labor with South Korean capital and technology.

As of end-August, a total of 52,881 North Koreans were working for 123 labor-intensive South Korean plants there, according to government data. (Yonhap News)


Pyongyang says only sea border in West Sea is its own
The Korea Herald. 10/20/12

SEOUL, (Yonhap) -- North Korea repeated its claim Saturday that the only maritime border in the western Yellow Sea is the one drawn by Pyongyang, condemning the South Korean president's recent trip to an island near the border where he urged increased efforts to deter any border violation by the communist nation.

South Korean President Lee Myung-bak on Thursday said the country's service members must stake their own lives if necessary to safeguard the Northern Limit Line (NLL), a de facto maritime border drawn by the U.S.-led United Nations Command at the end of the 1950-53 Korean War.

The North mostly refrains from crossing the de facto border, but often claims the NLL, drawn unilaterally by the United Nations Command, is not legitimate and demands a new border be drawn further south of the existing NLL.

"Only the sea military border drawn by us will exist in the Yellow Sea, not the NLL, until unification comes," an unidentified spokesperson for the North's powerful National Defense Commission said in a statement carried Saturday by the communist nation's Korean Central News Agency.

The Yellow Sea border has been the scene of a number of bloody inter-Korean clashes. The two sides fought naval gun-battles in the area in 1999, 2002 and 2009. In 2010, the North torpedoed a South Korean warship in the area, killing 46 sailors, and shelled Yeonpyeong Island, leaving two South Korean Marines and two civilians dead.

On Friday, a North Korean fishing boat briefly crossed into South Korean waters near the border, but returned after South Korean patrol boats broadcast warning signals. It marked the seventh border violation by the North's vessels in the area since last month.