During the great famine of 1994-1995, many North Korean villagers were executed for having slaughtered cows assigned to their care, according to North Korean defectors now living in the South.

North Korea was coming out of this "hardship march" and trying to rebuild its cattle herds when Chung's offer came. So it was a welcome gift.

Chung's "cow visit" to the North opened the hitherto closed inland route through the DMZ. It was followed by a tour of Mt. Kumgang tour for South Koreans and paved the way for the first South-North summit meeting two years later.

North Korea has never disclosed what happened to the 500 cows and bulls that Chung donated in 1998. But now, seven years later, North Koreans report that a big change is being made in the raising of cattle.

The late Hyundai Chairman Chung Ju-Yung.

"Of course, when they are needed at the collective farms, farmers bring them to the farm for labor, but they take them home afterwards," he said.

The villager said that it was a "win-win" arrangement for both parties as the authorities can save the cost of caring for the cows while the farmers can lend them to other villagers for tilling and profit from the arrangement. He said all sides were satisfied and that villagers take much better care of the animals. The result is well-bred, healthier cows that generate more money for their owners.

"Most satisfied are the local officials, of course," said the villager. "They don't have the burden of looking after the animals as villagers are taking good care of the animals, and the villagers bring bribes and gifts. They are openly saying that this new arrangement (they still would not dare say the word 'capitalism') is not that bad after all."

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