Archive for the ‘Cell phones’ Category

DPRK insurance market updates

Monday, August 17th, 2015

UPDATE 1 (2015-8-20): The Institute for Far Eastern Studies (IFES) reports on developments in the DPRK’s insurance market:

New Insurance Products Appearing in North Korea

All sorts of insurance products, such as cell phone insurance and insurance against damage to fruit farms, are starting to appear in North Korea.

The Korea National Insurance Corporation (the state insurance company representing North Korea), revealed on its website on August 12, 2015 that the issue of cell phone insurance was discussed at the annual general meeting of provincial governors held in Pyongyang in February 2015.

“At last year’s meeting, provincial governors from all over, including Pyongyang, North Hamgyong Province, Yanggang Province, and Jagang Province, met and introduced new areas of business such as cell phone insurance. They discussed increasing the number of insurance policy holders and expanding coverage to raise insurance premium revenue,” the insurance company reported.

Recently, as the number of cell phone owners shoots up, the instances of lost or damaged phones have also risen. It appears that this new form of insurance is being offered against this backdrop to compensate cell phone owners for such incidents. As in South Korea, it is not yet mandatory for North Korean cell phone owners to purchase cell phone insurance.

Currently, North Korea’s primary mobile carrier, the Egyptian firm Orascom, owns a 75% share in North Korea’s mobile communications company Koryo Link. As of the end of June 2014, the company had 2.4 million cell phone subscribers in North Korea.

The Korea National Insurance Corporation is also preparing to offer insurance for fruit trees in order to compensate owners of fruit farms for damage caused by natural disasters or other events.

The company explained the background behind offering this insurance product on their homepage. According to the website, since Kim Jong Un came to power, a lot of effort has been put into the development of agriculture and fruit farms, but due to recent abnormal climate phenomena like El Niño, these fields have experienced a lot of difficulties.

The website reveals, “Based on experience accumulated in the testing phase, we plan on offering insurance coverage within several years for modern, large-scale fruit farms like Taedong River Integrated Fruit Farm and Kangwon Province’s Kosan Fruit Farm.”

In order to do this, the company has been performing risk appraisals since 2013 with international damage appraisers for each of the fruit farms. This suggests that it is keeping foreign reinsurance companies and contracts in mind.

The company offers fruit farms insurance coverage for a variety of calamities and natural disasters. It covers fruit trees in the event of drought, landslides, or fire; fruit in the event of hail, drought, excessive moisture, extreme heat, or fire; and the quality of fruit in the event of hail, heavy rain, or storms.

The provision of insurance for fruit farms is seen as an extension of North Korea’s ongoing efforts to earn foreign currency through insurance companies.

The fact that various insurance products are appearing in North Korea has attracted attention in the context of North Korea’s recent economic developments. Since Kim Jong Un came to power, the regime has tried to recognize and protect private property as the market economy has expanded through the growth of companies’ independent management rights and the expansion of private profits. Especially in the case of insurance companies, it is believed that the regime is trying to maximize profits by generating additional income through insurance premiums.

ORIGINAL POST (2015-8-17): Elizabeth Shim reports the following at UPI:

On Tuesday, Pyongyang’s Korea National Insurance Corp. posted on its website information on annual meetings held in each province. Issues of mobile phone insurance were discussed during the meetings, South Korean news agency Yonhap reported.

The North Korean insurance firm said in statement that new businesses were being introduced to meet the increased demand for mobile phone insurance in Pyongyang and the provinces, South Korean television network SBS reported.

The mobile phone is becoming a central component of everyday life for many North Koreans, particularly for merchants who are on the road to sell wares around the country – but damage or loss of phones are raising the demand for insurance in the country.

Egyptian firm Orascom owns a 75 percent stake in North Korea’s main network, Koryolink, and offers services to 2.4 million North Koreans.

Other insurance mentioned include new policies for agriculture and protection plans for large-scale fruit farms by the Taedong River and in Kangwon province are being assembled, according to North Korea. The plans would provide protection against weather effects like “El Nino,” that is resulting in increased drought, torrential rain, high temperatures and other factors that are hurting crops.

The Korea National Insurance Corporation web page is here. Here are the two specific reports mentioned in the article:

Annual conference of provincial KNIC branches held

The annual conference of provincial branches of Korea National Insurance Corporation was held in Pyongyang on February 25th and 26th.

It was attended by head-office officials concerned and branch managers, and accountants thereof, of different provinces.

Its agenda involved review of last year’s insurance operations conducted by the provincial branches, and determination of their goals to be reached this year.

Great appreciation was shown in the conference for the branches including the ones in Pyongyang, North Hamgyong Province, Ryanggang and Jagang Provinces, all of which, last year, introduced new insurance products, like mobile phone insurance, into sale, and brought an increase in the number of the insureds and objects to result a rise in premium income, and made prompt indemnifications on a scientific basis thus contributing to the stabilization of operation, production of the insureds concerned and people’s lives, as well.

Stress was laid on adoption and development of effective business strategies plus further improvement and intensification of insurance operation upholding the slogan reading “ Let us all turn out in the general offensive to hasten final victory in the revolutionary spirit of Paektu!”, thus enhancing the role of insurance in line with the development of national economy and improvement of the livelihood of the people as befitting the significance of the year marking the 70th founding anniversary of the Workers’ Party of Korea.

Lectures were given on business practices involving accountancy and some insurance accounts during the conference.

Fruit Crop Insurance to be introduced in future

According to a far-reaching plan of Chairman Kim Jong Il and supreme leader Kim Jong Un to supply the people with fresh fruit in and out of season, Taedonggang Combined Fruit Farm had been built as the best integrated base for fruit production, keeping production going on a high level, and furthermore, Kosan Fruit Farm has been expanded as a large-scale fruit farm with the introduction of scientific, intensive and modernized methods into fruit production.

At present, the farms have boosted production by applying the densely planting method of dwarf fruit trees following the world-wide trend of fruit farming development and growing several kinds of fruit trees including high-grade apple, pear and peach as befits the specific conditions of our country.

They grow apple trees of Korean original varieties such as Hwangju, Pukchong and Unryul together with dwarf apple trees of more than a hundred of varieties including Granny Smith, Fuji and Golden Delicious,and meet their own demand for young saplings by growing them on their own.

However, there have frequently occurred abnormal weather phenomena due to El Nino in recent years, causing negative effects on agriculture and fruit farming in our country and its surrounding countries.

As far as fruit farming is so greatly influenced by the nature and terrain and weather conditions as agriculture, Korea National Insurance Corporation (KNIC) has intention of newly underwriting insurance contracts with fruit farms in our country so as to put production on a normal basis under the adverse weather conditions recently occurred.

The subject matter insured under Fruit Crop Insurance shall be fruit and fruit trees cultivated by fruit farms in DPRK, and the covered risks are as follows;

– Yield Loss Coverage

Drought, freezing, landslide, fire,

– Fruit Tree Loss Coverage

Hail, drought, excessive moisture, extreme heat, fire,

– Quality Loss Coverage

Hail, torrential rainfall and windstorm.

In 2013, KNIC conducted a risk survey on some fruit farms in our country in cooperation with international loss adjusters, and since then KNIC has underwritten insurance contracts with those farms.

KNIC, on the basis of practical experience gained at that pilot stage, shall cover against the risks mentioned above modernized and large-scale fruit farms including Taedonggang Combined Fruit Farm and Kosan Fruit Farm within a few years to come.

Although KNIC has a dubious history, today the group still posts regular financial information which (if accurate) would make it one of the most financially transparent organizations in the DPRK (Congrats to them for at least trying). See tables here, here, and here.

Previous posts on the Korean National Insurance Corporation here.

Once they figure out crop insurance, the next step should be a commodity futures market!

Read the full UPI story here:
North Korea to provide insurance for drought, lost phones
UPI
Elizabeth Shim
2015-8-12

Share

KoryoLink drops subscription fees

Wednesday, July 1st, 2015

According to Radio Free Asia:

A dramatic decrease in the monthly rate for cellphone services in impoverished North Korea has seen the number of subscribers skyrocket, but sources inside the reclusive nation say the data may be misleading, as people sign up for two mobile phones at once in order to avoid massive overage fees.

The cost of using a cellphone on Koryolink’s 3G network dropped from 25 yuan (U.S. $4) per month at the end of 2013 to a maximum of 1,000 won, or 1 yuan (U.S. $0.16), in 2014, prompting North Koreans to sign up in droves, according to an official with the Wireless Service Department in Yanggang province.

The surge in subscriptions has prompted the government to open a number of storefronts staffed with agents to deal with the demand and sell cellphones associated with the services, the source said, speaking to RFA’s Korean Service on condition of anonymity.

“Since last year, cellphone agencies have been established in each city and province,” he said.

“In Hyesan (the administrative center of Yanggang province), a cellphone agency was set up next to the Kim Jong Suk Art Theater (named after the grandmother of current regime leader Kim Jong Un), where many people often gather.”

According to the source, the base rate of 1 yuan per month provides subscribers with up to four hours of free calls and 20 text messages. Calls and other services in North Korea are limited to usage within the country only, except for resident foreigners, tourists and selected elite members of society.

The Wireless Service Department official did not provide statistics for the increase in subscribers.

Orascom, an Egyptian telecom company that jointly operates Koryolink with the state-owned Korea Post and Telecommunications Corporation, has said around 2.4 million, or 10 percent, of the country’s estimated 24 million people were signed up with the carrier by the end of June 2014.

In comparison, Orascom said Koryolink had hit 2 million users in May 2013, adding a million subscribers in the 15 months prior.

Inflated numbers

A second source from North Hamgyong province told RFA that the recent increase in subscriptions, linked to the purchase of new phones, had earned praise from central authorities.

“Last year, North Hamgyong province took first place in national sales of cellular phones and the head of its Wireless Service Department received a commendation,” the source said, adding that the capital Pyongyang came in second place, followed by North Pyongan province.

But while the base rates for cellphone services are cheap, subscribers are charged exorbitant fees totaling as much as 100 times the cost of monthly services if usage limits are exceeded, he said.

Because four hours of free talk time and 20 text messages are insufficient, the source said most merchants and officials choose to purchase two cellphones and subscribe to plans for both, allowing them to double usage each month and avoid the high overage fees.

The double purchasing of phones and monthly services had artificially inflated the number of subscribers, he said.

Skeptics have questioned the accuracy of Orascom’s claim of 2.4 million subscribers, saying that—after subtracting a standing army of 1 million soldiers who cannot own cellphones due to security reasons and at least 3 million children aged 10 years or younger—it would suggest more than one in 10 of North Korea’s mostly poverty-stricken citizens use mobile services.

Reports also say that handsets which operate on Chinese networks across the border are regularly smuggled into the country, further complicating estimates of how many cellphone users there are in the North.

North Koreans are reportedly allowed to access only certain 3G services with their cellphones, including SMS and MMS messaging and video calls, but not the Internet.

Read the full story here:
Dramatic Decrease in Mobile Rates Draws Subscribers in North Korea
Radio Free Asia
2015-07-01

Share

DPRK imports of smart phones in 2014

Friday, January 30th, 2015

According to Yonhap:

North Korea’s smartphone imports from China surged to a record high last year, a sign of a growing number of people there being connected to the net, according to data released Friday.

North Korea brought in US$82.8 million worth of smartphones from China in 2014, almost double the amount recorded a year earlier, according to the Seoul-based Korea International Trade Association.

It marked the largest volume since 2007, when related data were introduced.

Imports of portable data-processing devices, including laptops, also jumped 16 percent on-year to $23 million in 2014 despite a 3-percent decline in the North’s overall imports from China in the year.

Around 10 percent of the communist nation’s 24-million residents reportedly use smartphones, with its 3G network run by Koryolink, a joint venture with an Egyptian company, Orascom Telecom.

See also this post with additional data on DPRK-china trade in 2014.

Read the full story here:
N. Korea’s smartphone imports from China hit record
Yonhap
2015-1-30

Share

Koryolink subscriptions hit 2.4 million

Tuesday, September 9th, 2014

Martyn Williams reports that KoryoLink subscriptions have hit 2.4 million.

You can read previous posts on the DPRK’s mobile phone network here.

Kevin Stahler ranks North Korea’s cell phone market penetration here.

Share

Competition rises among factories and department stores in North Korea: Delivery services now available

Friday, September 5th, 2014

Institute for Far Easter Studies (IFES)
2014-9-4

It appears that some factories and department stores in North Korea have begun to implement a delivery service in response to customer demand. This new customer-oriented service seems to have arisen out of the Kim Jong Un regime’s goal of increasing autonomy and competition among businesses.

According to the newest issue of “Choguk” [Joguk] (“Motherland”, September 2014), a media outlet associated with the General Association of Korean Residents in Japan, North Korea’s representative state-run department store Pyongyang Department Store No. 1 has been making efforts to diversify the services offered to its customers. The article specifically revealed a personal delivery service, saying, “Salespersons have responded to the public’s requests and have begun to deliver ordered products to sell directly to customers at their doorsteps.”

Salespersons from Pyongyang Department Store No. 1 have also been travelling to power plants, mining sites, textile mills, farms and other worksites to sell products directly to workers and farmers. Other businesses, such as the Potong River Shoe Factory, have also been diversifying customer services. For example, employees now visit customers’ homes to measure shoe size and satisfy other requests they may have when placing an order for shoes.

The Daedong River Passenger Transport Company in Pyongyang is currently offering a taxi dispatching service to customers who call in and request a pickup. Similar to the workings of South Korea’s taxi service, North Koreans may simply dial “186” to be connected to the closest dispatch office, which then sends out a taxi to pick up the customer.

On the other hand, North Korea has recognized the problem of the low-quality products and poor construction work and has emphasized that efforts must be made to remedy these areas. In the most recent issue of the quarterly academic journal, Kyongje Yongu [Economic Research] (2014, Issue 3), one article points out problems in the poor quality of North Korean-made products and construction, saying, “Neglect in quality growth is an outdated attitude.”

Specifically, the article mentions the problem of promising completion of construction according to deadlines: “Technical regulations and construction methods are disregarded when projects are rushed to be finished by their completion date, which is often decided in advance to coincide with a holiday or anniversary.

Currently, North Korea has undertaken large-scale construction operations to finish the Kim Chaek University of Technology’s faculty apartments, the Pyongyang Orphanage and Nursery, the North Pyongan Chongchon River Power Plant and other projects spanning various fields. The goal is to complete these projects concurrently with the anniversary of the foundation of the Worker’s Party of Korea (October 10).

At construction sites around North Korea, it appears that all available resources are being mobilized to engage in a so-called “speed battle” with these construction deadlines. The side effect of this huge emphasis on speed has resulted in many instances of poor construction, like the collapse of the 23-floor apartment building in Pyongyang’s Ansan-1-dong back in May.

The article also points out, “Despite attempting to work toward self-sustainability, there are events where lower quality, alternative products are being used below the material requirements that are leading to lowered quality work.” Furthermore, the article emphasizes, “Production and circulation of faulty products or products which cause harm to the health or lifestyle of the people must be stopped.”

It has also been reported that corruption is taking place at factories and construction sites, with party officials or intermediary managers amassing riches by siphoning off materials and pocketing the money. This leads to further problems in product quality and defectiveness.

Due to the issues of poor construction and product quality, the article points out, “There are many areas in our material economic life that fall behind the global trend,” but “if the quality of products and buildings are improved, the need to consider products from other countries will wane.”

In order to solve these problems, the article suggests implementing product standardization and specialization and encourages research in industrial design.

Share

DPRK restricts international mobile phone use

Monday, September 1st, 2014

According to Reuters:

In a move that makes it harder for North Koreans to gain illicit access to the global Internet, North Korea now only allows mobile phone SIM cards used by tourists to be active for the duration of their visit, tourism sources told Reuters.

Unlike North Koreans, foreigners visiting the isolated country can freely browse social media sites such as Facebook and Twitter using the Koryolink domestic network.

Under a change made in July, North Korea deactivates the card when a visitor leaves, ensuring that it can not be left for use by a resident, the sources said. It can be reactivated when a visitor returns to the country.

“This basically means in practical terms that if someone leaves the country they can’t simply leave their phone with a local friend and have them use the Internet,” said one source, who declined to be identified due to the sensitivity of discussing such issues when working in North Korea.

Read the full story here:
North Korea tightens grip on phone SIM cards used by tourists
Reuters
James Pearson
2014-9-1

Share

China – DPRK trade data (January 2014)

Sunday, February 2nd, 2014

Yonhap reports that China – DPRK trade appears unaffected by the purge of Jang Song-thaek. According to the article:

Despite North Korea’s stunning execution of the leader’s uncle in December, its trade with China remained solid in January, up 16 percent from a year earlier, data showed Friday.

Jang Song-thaek, the country’s No. 2 man and leader Kim Jong-un’s uncle, had played an important role in dealing with Beijing before being executed late last year on treason charges. The political upheaval raised concerns over a possible instability that could spill over into other areas of the reclusive country’s moribund economy and society.

Still, trade volume between North Korea and its major trading partner China came to US$546 million in January, compared with $471 million from a year earlier, according to the data compiled by the Korea International Trade Association (KITA).

North Korean exports to China jumped 18 percent on-year to $223 million, with imports rising 14.5 percent to $323 million, the data showed.

Anthracite was the No. 1 export item for the impoverished country to its communist neighbor, selling some $101 million worth of the natural resource last month, up 21.3 percent from a year ago.

North Korea’s anthracite exports are a major source of income, and China is virtually the only destination for the shipments.

Inbound shipments of China-made cell phones soared 28 percent on-year to $14.4 million in January, the data showed.

“Trade volume between the two countries is expected to rise further given China’s growing demand for minerals for its project to develop its three northeastern provinces of Heilongjiang, Jilin and Liaoning,” said Lim Eul-chul, a research professor at Kyungnam University.

“Such political variables as Jang’s execution would not likely affect the trend,” he added.

The heavily sanctioned North Korea has been increasingly reliant on China, though the Asian giant has become frustrated with its wayward neighbor, particularly after Pyongyang’s third nuclear test early last year.

In 2013, trade volume between the two reached a record $6.45 billion last year, up 10.4 percent from the previous year, according to KITA data.

The Wall Street Journal notes:

“Bilateral trade has probably yet to feel the impact of Mr. Jang’s execution,” said Cho Bong-hyun, research fellow at Seoul-based IBK Economic Research Institute.

“Both sides are still acting on trade contracts that have already been signed and usually take effect for six months,” Mr. Cho said.

Mr. Cho said he expects the impact from Mr. Jang’s purge will begin to appear in the data from the second quarter of this year. North Korea may also increasingly turn to trade with South Korea following a thawing of ties and the reopening of a jointly run Kaesong industrial park, he said.

The KITA data show inter-Korean trade volume shrank 42% to an eight-year low of $1.15 billion last year, when the Kaesong complex was closed for several months after North Korea pulled out its workers.

North Korean-Chinese trade volume hit a record high of $6.54 billion last year, according to KITA, as North Korea exported natural resources such as coal and iron ore, while importing fuel and electronics goods.

The Korea Trade-Investment Promotion Agency, Seoul’s state-funded trade agency, said in a report last year that North Korea’s bilateral trade with China accounted for 88% of Pyongyang’s entire external trade in 2012, up from 53% in 2005.

Read the full stories here:
N. Korea, China trade unaffected by stunning execution: data
Yonhap
2014-2-28

Jang Purge Yet to Hurt North Korea-China Trade
Wall Street Journal
Kwanwoo Jun
2014-2-28

Share

DPRK-china trade at record US$6.45b in 2013

Friday, January 31st, 2014

According to Yonhap:

Trade volume between North Korea and its major trading partner China reached a record US$6.45 billion last year, up 10.4 percent from a year earlier, data showed Saturday.

North Korean exports to China jumped 17.2 percent on-year, while imports from China increased 5.4 percent, according to the data from the Korea International Trade Association.

Pyongyang’s trade deficit recorded $721 million, a 25 percent decrease compared with the previous year, the data showed.

North Korea’s major export items were minerals, with $1.37 billion worth of anthracite and $294.1 million of iron ore shipped to China last year.

North Korea’s anthracite exports are a major source of income, and China is virtually the only destination for the shipments.

The isolated socialist state heavily relied on China for crude oil, buying $598.1 million from its sole financial and diplomatic backer.

Inbound shipments of China-made cell phones fell to $44 million last year, shrinking by 26.6 percent from a year ago.

The latest data showed the heavily sanctioned North Korea is increasingly reliant on China, even though the Asian giant has become frustrated with its wayward neighbor, particularly after Pyongyang’s third nuclear test early last year.

Since these numbers are aggregated, we cannot observe if the purge of Jang song-thaek and his patronage network had any effect on DPRK/China trade at the end of the year.

The DPRK also increased oil imports from China in 2013. According to Yonhap (2014-2-10):

Shipments of crude oil to North Korea from China increased 11.2 percent on-year in 2013, a South Korean government report showed Monday, the latest sign that Beijing still gives Pyongyang access to the vital commodity despite its defiant pursuit of nuclear weapons.

North Korea imported a total of 578,000 tons of crude oil from China last year, compared with 520,000 tons in 2012, according to the report based on China’s customs data.

Monthly shipments of crude oil from China to North Korea were absent in February, June and July last year, but Beijing exported “a large amount of crude oil” to Pyongyang in the second-half of last year, the report said.

In 2013, trade between North Korea and China rose 8.9 percent on-year to reach US$6.54 billion, with the North’s exports to China jumping 18 percent to $2.91 billion, the report showed.

“Our overall analysis is that international sanctions against North Korea’s nuclear and missile programs have not reduced or shrunk the North’s trade with China,” a South Korean diplomat said on the condition of anonymity.

Here is coverage in the Daily NK.

Additional information:
1. Imports of grain were up. Food aid imports from UN were down.

2. Coal exports to China up.

3. DPRK visitors to China up.

Read the full stories here:
Trade between N. Korea, China hits record $6.45 bln in 2013
Yonhap
2014-1-31

N. Korea’s crude oil imports from China rise 11.2 pct in 2013
Yonhap
2014-2-10

Share

Orascom’s Audit 2013

Monday, December 23rd, 2013

UPDATE: I got the official exchange rate wrong in the initial post. I have corrected it.

ORIGINAL POST: A couple of weeks ago news came out that Orascom was holding off further investment in the DPRK until it was able to repatriate some of its profits. A few days later Orascom issued a press release denying this and asserting that they are looking for new investment opportunities in the DPRK.

This correction raises questions about just how significant Orascom’s profits in the DPRK are. Information on the growth of KoryoLink has been scarce since it was spun off into a subsidiary company (it no longer appears in Orascom shareholder reports)Martyn Williams did us all a favor, however, and found the Jan-Sept 2013 audit for Orascom Telecom Media and Technology Holding (OTMT), the company now holding the KoryoLink portfolio.

I have uploaded the audit to this site, and you can download it here (PDF). It contains the consolidated financial reports for OTMT, including KoryoLink.

The audit is posted as an image PDF (so the text is not searchable or easily copied into blog posts), but I offer some key data below. The caveat to keep in mind is that all of the USD$ calculations appear to be determined by converting DPRK Won (KPW) at the official rate (appx 100KPW/1US$ and 130KPW/1 Euro). This may be the appropriate accounting standard to employ, but needless to say, this radically overstates the market value of the firm’s position since the current black market rate of the won is approximately 8,000KPW/1US$:

OTMT-screenshot-1-2013-09

US$422 million is $42.2 billion North Korean Won (converted at the official rate). Converted back to US$ at the black market, the total is just US$5,275,000.

OTMT EBITDA (Earnings before income tax, depreciation, amortization) for the period Jan-Sept 2013 are listed as USD$178,962,000. This is just  US$2,237,025 million at the black market rate.

Capital expenditure from Jan – Sept 2013 is listed as USD$40,931, 000 (Appx $665,128 at black market rate).

KoryoLink’s tax exempt status ended on Dec 15, 2013.

The audit specifically addresses the difficulties of operating in North Korea’s official financial sector:

OTMT-screenshot-2-2013-09

Some additional documents from June of this year can be found here and here. I am not an accountant and already have enough on my plate, so if there are any researchers out there that want to take a crack at this stuff, please do.

Share

Orascom seeks repatriation of profits – or new opportunities?

Friday, December 6th, 2013

UPDATE 1 (2013-12-8): According to an OTMT press release:

Orascom Telecom Media and Technology Holding Denies Reports about Freezing Investment in North Korea

Cairo, December 8th, 2013, Orascom Telecom Media and Technology Holding S.A.E. (“OTMT”) announced today that recent reports in some media sources claiming that OTMT is freezing its investment in North Korea are entirely inaccurate. Where OTMT currently has no plans for new investments in North Korea, the company is open for new opportunities in this market, in which it has been investing for six years. The company has not announced any intentions to freeze investments in the North Korean market.

-END-

About Orascom Telecom Media and Technology

OTMT is a holding company that has investments in companies with operations mainly in Egypt, North Korea, Pakistan, Lebanon and other North African and Middle-Eastern countries. The activities of OTMT are mainly divided into its GSM, media and technology and cable businesses. The GSM activities include mobile telecommunications operations in Egypt, North Korea and Lebanon. The media and technology division consists of OT Ventures/Intouch Communications Service and the OT Ventures Internet portals and other ventures in Egypt, including LINK Development, ARPU+ and LINKonLINE. The cable business focuses on the management of cable networks.

OTMT is traded on the Egyptian Exchange under the symbol (OTMT.CA, OTMT EY).

And according to New York Telecom Exchange:

***Orascom Telecom has refuted recent media reports that it is freezing investment in its North Korean mobile network subsidiary.The company said that the reports “are entirely inaccurate.”In a statement it said that where OTMT currently has no plans for new investments in North Korea, the company is open for new opportunities in this market, in which it has been investing for six years.The company added that it “has not announced any intentions to freeze investments in the North Korean market.”However, it is worth noting that many companies do things without making announcements about them and the statement did not explicitly confirm that it would be spending any more money on its North Korean network, only that it was open to further opportunities.

ORIGINAL POST (2013-12-6): According to the Chosun Ilbo:

Egypt’s Orascom Telecom, the mobile service provider in North Korea, has invested US$200 million into the project so far but has yet to make a dime, according to website Middle East Online.

Orascom chief Naguib Onsi Sawiris was quoted by the U.K.-based website as saying he would make no more investment in North Korea until the company sees some returns.

Orascom started offering 3G mobile services in North Korea in a joint venture with North Korea’s postal service in 2008. The joint venture, Koryo Link, is 75-percent owned by Orascom and 25 percent by the North. It has managed to attract 2 million subscribers.

The Egyptian company invested another $200 million to build the giant Ryugyong Hotel in Pyongyang and set up a joint venture bank.

But North Korea apparently barred Orascom from sending profits from the mobile phone service back to Egypt. “Koryo Link is making profits, but North Korean authorities seem to have blocked remittance of the money,” a source in Beijing said.

The only firm, of which I am aware,  that has been able to repatriate significant sums of hard currency is Pyeonghwa Motors. Most traders take out North Korean goods/products that they can then sell for currency.

Read the full story here:
Egyptian Telecom Halts Investment in N.Korea
Chosun Ilbo
2013-12-6

Share