Sinuiju-the western media reacts
North Korea has aet up a special economic zone in its north-western city of Sinuiji on the Chinese Border town Dandong (source link). Sinuiju is the main gateway to to China, North Korea’s last major strategic ally and major trading partner. The city has a chemical, metal and food factories, and has often been cited as a potential candidate for a free-trade zone as the North experiments with elements of a market economy (Sacramento Bee, Sept. 24, 2002).
After a ceremony in “The Hall ten Thousand Years” DPRK officials announced the name of the chief executive who would run the venture for 50 years. The man is Yang Bin, a 39 year old tycoon listed last year by Forbes magazine as China’s second richest man. Born and brought up in the PRC, but now a Dutch citizen, Mr. Yang is the founder of a diversified business empire which has amassed him a personal fortune of $US900m. He moved to the Netherlands in the late 1980s and set up a successful textile company before returning to China in the 1990s to start a horticultural business specializing in orchids. Through his Euro-Asia Agricultural Holdings (where he is chairman), Mr. Yang now also has interests in tourism and real estate. Last year, Mr. Yang set up a joint venture horticultural company in Pyongyang which may be the basis for his contacts with the country’s leadership. Mr. Yang also owns a Dutch theme park in Shenyang called “Holland Villiage” (Wall Street Journal, Oct 3, 2002m A7). However, Mr. Yang’s fortunes suffered a temporary setback earlier this year when shares in his Hong Kong listed firm slumped amid investor doubts over his financial position (source link). According to the Wall Street Journal, Mr. Yang is under investigation by Chinese tax officials for tax evasion. The share price of his Hong Kong listed orchid producer (Euro-Asia) has dropped 79% this year (aggrivated when Mr. Yangsold some of his own shares).
According to media sources, Mr. Yang plans to move more than 500,000 North Koreans from the 132 sq. kilometer area along the Chinese border, and a wall will be build to separate the city from the regions other inhabitants. In addition, the legal system could be based on european law and legislators, administrators and judges could be from other countries, even the west. Mr. Yang said that Kim Jong Il had created the project as a window for the rest of the world to see that North Korea is experimenting with change (source link).
Further (Sacramento Bee, Sept. 24, 2002):
Yang said the North Korean government was committed to not interfering in the sinuiju experiment, which he said would use Chinese Yuan or $US as its currency, and would adopt chinese, English and Korean as its official languages. A large fraction of the workforce would be imported from China and a new port would be constructed. Yang also said Pyongyang wanted to recruit a legislative council of 15 people, half from China, Hong Kong, Taiwan, Europe or even the US.
Additionally (from the New York Times)
Mr. Yang said on Monday that North Korea would build 100,000 greenhouses to grow vegetables for export, with his company handling the sales. Although he said work would begin quickly, Mr. Yang did not offer a timetable. The Hong Kong newspaper South China Morning Post said the new zone would have no import or export tariffs and a fixed income tax of 14%. [Like Hong Kong's own income tax system]
Quotes from Mr. Yang:
“[Sinuiju] will be a totally capitalist region” (source link)
“[Sinuiju] will have its own legislative, judicial and executive powers without any interference from central government” (source link)
