NORTH KOREAN INDUSTRIAL EXPANSION, 1949 - 1950

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000700030089-9
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 5
• Document Creation Date: December 22, 2016
• Document Release Date: October 6, 2011
• Sequence Number: 89
• Publication Date: November 16, 1951
• Content Type: REPORT

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COUNTRY
SUBJECT
HOW
PUBLISHED
WHERE
PUBLISHED
DATE
PUBLISHED
LANGUAGE
CLASSIFICATION CONFIDENTIAL
SEC = INFORMATIO>~ONFIDEN
Economic - Industry
Yearbook
Pyongyang
20 Feb 1950
TV1, OOCV V,p GOIAN11, INPO11ATON AIIVCT,P n, ...t ?nIN.
of n. u. n. {TAT,/ .1- nA UINVIN, NT 11M...OINP, ACT PN
V. ,. C..,1 ANN,LV.VIIOIN. In M.. .1O, n, A,n.AT1ON
OP ITN COmm IN 11
O 1111 TO A. V 111Vn 0.1,0 PINION IA
Vn PVO-
lnO OF LAW. V,PWNVrnON OP T-u PONN 1, ROVnlnS.
DATE OF
INFORMATION 1949
DATE DIST. /,~ Nov 1951
NO. OF PAGES 5
SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
SOURCE Choson Chungang Nyongam (Korean Central Yearbook), 1950, published by
KoreanjCentral Revs Agency.
NORTH KOREAN INDUSTRIAL EXPANSION 1949 - 1950
The North Korean yearbook for 1950, which was published 4 monthe
before the 25 June Invasion of South Korea, reviews the industrial
expansion plan for 1949 and 1950 under the Two-Year People's Eco-
nomic Program.
The objectives of the program, outlined by the Supreme People'u
Assembly of the Democratic People's Re;:ublic of Korea, are aimed
primarily at the expansion Lf existing industrial productive capac-
ity and the restoration of damaged i?.:dustrial facilities to meet
the increased needs of the ccuatr?.
Production quotas have been determined for 1949 and 1950 for
all major industries, and government investment figures for these
industries are given.
The Supreme People's Assembly of the Democrat*c People's depublic of Korea
has announced the basic objectives for industry, agriculture, transportation,
communications, commerce, educetion, culture, etc., under the Twc-Year People's
Economic Program for 1949 and 1.950. Some of the objectives set forth for the
industrial field are as follows:
1. Expand existing industrial capacity; restore damaged indi.stria' facili-
ties to the fullest extent possible; construct as many new indu-trial facilities
as possible, so that production in 1550 will double that of 194b and will sur-
pass the 1944 level.
2. Fulfill the increased de:-:and for retals; expand the metallurgical in-
dustry; pay special attention to the improvement of both the quality and quan-
tity of rolled steel; and construct small and medium rolling mills.
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ARMY AIR
XFM
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3. Expand rapidly the machine and shipbuilding industries, both of which
have been unable to meet the needs of the pecle's economy; it the manufacture
of machine tools, machine parts, and small and medium vessels, build a founda-
tion for technological independence, which must be achieved in the near future;
and pay particular attention to the expansion of the machine-tool industry.
4. Increase fertilizer production, since fertilizer is closely related to
an increase in food production. A sufficient quantity of chemical fertilizer
should be produced to supply the demand not only of North Korea but also of
South Korea, whose agriculture must be restored as soon as the unification of
the nation is completed.
The total production in state-operated industries has been fixed, in terms
of won value, at 19,223,470,000 won for 1949 and 26,053,490,000 won for 1950.
Production for 1949 will amount to 143.2 percent of that of 1948, while produc-
tion for 1950 has been set at 194.1 percent of that of 1948, c? 33.2 percent
a.,ove the 1944 level.
Production quotas for the state-operated industries for 1949 and 1950 have
been fixed for each major industry as follows:
Electric Industry
Electric power (kw-h) 6,500,000,000 6,800,000,000
6,000-kw alternating generators (units) 2
Electric motors (units) 975 2,547
Transformers (units) 1,380 4,150
Various types of electric wire (tons) 695 1,125
Fuel Industry (tons)
Bituminous coal 1,850,000 2,500,000
Anthracite coal 2,098,000 2,999,000
Mining Industry (tons)
Iron ore 400,000 820,000
Iron sulfide 288,000 310,000
Tungsten 2,250,000 2,900,000
Graphite 45,250,000 62,300,000
Metal Industry (tons)
Pig iron 170,000 372,000
Steel ingots 173,000 249,000
Special steel 14,245 15,720
Fabricated steel 50,000 64,000
Steel wire 3,300 4,100
Steel plate 49,600 84,000
Rolled steel 1,450 2,200
Electrolytic copper 2,498 2,915
Ele,:tro.lytic lead 9,046 12,405
Electrolytic zinc 7,600 19,440
Machine Industry (tons)
..:st-iron products 9,200 12,900
Cast-steel products 6,740 12,769
Machine-manufactured articles 9,420 15,600
Vessels 10,900 14,650
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Chemical Industry (tons)
Chemical fertilizer
372,440
415,600
Caustic soda
13,300
22,000
Carbide
128,000
143,000
Soap
8,760
11,200
Electrodes
13,070
14,060
Construction Industry (tons)
Firebrick
62,510
84,000
Plate glass
1,000
7,500
Light Indus try
Cotton cloth (km)
11,442
14,480
Silk cloth (km)
2,538
2,387
Paper (tons)
19,600
23,700
The basic task of the electric power industry for 1949 and 1950 is to
Production of electric power for 1949 will be 105.7 percent, and for 1950;
110.6 percent, of that of 1948. Production of electric equipment during 1949
will be 429.7 percent, and for 1950, 792.2 percent, of t',at of 1948.
In the fuel industry, the total production for 1949 will be 103.3 percent,
and for 1950, 135.9 percent, of 1948. The investment for basic construction of
the fuel industry in 1949 will be 424,877,000 won, and for 1950, 512,670,000 won.
An effort to increase both coal mining and the quality of coal mined will be the
most important work of this industry. The total calorific value in 1949 will be
20,E ^.100;000 calories, and in 1950, 29,213,000,000,000. More than 100 kilo-
;net-, of cc"l shafts will be dug during 1949 and 1950.
in
the
field of mining, the total output for
1949
is expected to be 136.6
percent,
and
for 1950, 172.8 percent, of that of
1948.
however, the mining of
iron ore
for
1950 has been set at 489 percent, and for iron sulfide, 103.5 per-
cent, of
the
level attained in 1946.
The government investments for basic construction of the mining industry
will be 410,439,000 won for 1949 and 487,385,000 won for 1950. The important
work of this industry includes the restoration of the Kaech'on Mine and 19
other mines, and the expansion of the ore-treatment plants of each mine. A
drive for the additional excavation of more than 55 kilometers of shafts during
1949 and 80 kilometers during 1950, will take place.
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CO ,IDEN~IAL
In the metal Industry, the total production of metals in 1949 will be
152.3 percent, and in 1950, 214.6 percent, of that of 1948. The production
quotas for the iron and steel industry for 1950 are set as follows (percent-
ages based on 1948): pig iron, 322 percent; steel ingots, 217 percent; steel
plates, 278 percent. For nonferrous metals: copper, 164 percent; lead, 184
percent; and zinc, 361 percent.
The projects contemplated for the metal industry during 1949 and 1950 in-
clude: the rebuilding of one 350-ton-capacity blast furnace and one 500-ton-
capacity blast furnace and the construction of two open-hearth furnaces, three
small steel-fabricating plants, one sheet-metal factory, one medium sceel-
fabricating plant, one rolling-stock plant, and two zinc refineries.
The total investment for this industry's basic construction in 1949 will
be 547,485,000 won. The amount fixed for 1950 is 453,570,000 won.
Total production in the machinery industry for 1949 has been set at 199.3
percent of that of 1948. In 1950, production will be raised to 309.9 percent.
Production in 1950 for cast-iron products has been set at 389 percent;
for machine-finished articles, 247 percent; and for cast-steel articles, 595
percent, of the level attained in 1948. Plants producing rolling stock gauges,
stone crushers, and agricultural tools will be built. The Pyongyang auto-
mobile factory will be converted into a machine-tool factory.
The shipbuilding industry will also be expanded. A new 1,000-ton-class
slipway will be constructed at the Wonsan shipyards. The building of steel
vessels in the 850-ton class will start in 1949.
The investment for basic construction in the machinery industry in 1949
will be 419 million won; for 1950, the sum has been set at 688 million won.
The total production of chemical products in 1949, based on the 1948
figures, will be 136.4 percent. An effort will be made to raise the figure
to 176.1 percent in 1950.
Fertilizer production will be incfeased to 113 percent, carbide 116 per-
cent, and caustic soda 299 percent in 1950 as compared with 1948. A drive to
increase the production of nitric acid and other chemical products will be made.
During 1949 and 1950, the Yongan Factory in Aoji will be expanded for the
production of methanol and formalin. Sodium carbonate, caustic soda, and calcium
cyanamide plants will be built.
The investment for the basic construction in the chemical industry in 1949
will be 580,907,000 won; the sum set for 1950 for this purpose is 517,641,000
won.
In toe construction industry, the total production of construction mate-
rialsin 1949, compared with 1948 production, will be 146.9 percent. Growth up
to 196.5 percent is contemplated for 1950. Cement production will be 174 per-
cent end firebrick, 254 percent, in 1950 a=; ccaoared with 1948.
The goals for 1949 and 1950 in the building material industry are the manu-
facturing of plate glass by the Nampo Glass Factory, the making of all kinds of
porcelain insulators and enamel hardware by the Chu'ul Ceramic Factory, the re-
building of two rotary cement kilns, and the construction of a new kiln. In-
vestment for basic construction of the building industry for 1949 will be
124,975,000 won, and for 1950, 79,550,000 won.
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In light industries, the total production for 1949 has been set at 147
percent of 1948; for 1950, it will be 198.3 percent of 1948. The 1950 quota
for cotton cloth produc,.ion is set at 304 percent of 1948. Paper production
in 1950 will be 215 percent of the 1948 figure.
For the expansion of light industries, the 2-year plan provides for the
additional installation of 30,000 spindles for cotton spinning, and 1,000
units each of cotton looms and silk looms. The investment for basic construc-
tion of this industry for 1949 will be 412,755,000 won, and for 1950, 403,130,000
won.
Improvement in labor efficiency and reduction of production costs in the
state-operated industries are the principal objectives of the People's Economic
Program for 1949 and 1950.
The 2-year plan provides for the following rates of improvement of labor
efficiency and reduction of production ccats in each industry (each increase is
based on the 1948 level):
Increase in Labor Efficiency
Industry
lgkq
1220
Electricity
20.8
27.8
Fuel
1.0
21.1
Mining
11.5
19.2
25.2
37.7
Machinery
23.7
35.2
Chemical
20.6
36.5
Construction
6.4
24.2
Light industries
16.6
36.3
Average for all industries
20.2
33.2
Reduction of Production Costs
1950
Nr
Electricity
9.3
17.0
Fuel
8.4
19.0
Mining
8.3
14.0
Metal
6.8
10.9
Machinery
20.5
25.6
Chemical
6.4
11.4
Construction
11.3
13.0
Light industries
13.7
18.7
Average for all industries
9.3
18.3
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