Archive for the ‘Foreign direct investment’ Category

Hay, Kalb and Associates suspending operations

Monday, August 1st, 2016

According to Reuters:

North Korea’s first and only law firm set up by a foreigner, Hay, Kalb & Associates, will suspend operations, the firm’s principal said in a statement on Monday, as the country grows increasingly isolated.

The firm is a joint venture between the North Korean state and British-French citizen Michael Hay, who has represented foreign clients in the capital, Pyongyang, for 12 years.

Hay said he had made the decision based on “business and geopolitical principles”.

“This decision has been taken only after lengthy and thorough deliberation and an examination of the continuing deterioration of inter-regional relations pertaining to the Korean peninsula,” Hay said in a statement.

“It is not unreasonable to assume that no meaningful change or indicator of change in relations shall occur, if at all, until well after the United States Presidential Inauguration, on January 20, 2017,” Hay said in the statement.

North Korea has come under growing diplomatic pressure since its January nuclear test and a long-range rocket launch in February, which led to a new U.N. Security Council resolution in March that tightened sanctions against Pyongyang.

The majority of Hay’s clients are foreign investors, many of whom have been negatively affected by the sanctions, Hay told Reuters.

“Sanctions are hurting legitimate foreign investors. There still is no credible, consistent evidence I see of DPRK companies hurting,” Hay said. DPRK stands for Democratic People’s Republic of Korea, the North’s official title.

Very few foreigners live or work in North Korea. Those who do are usually members of the diplomatic or NGO community, although a small group of foreign investors have maintained a quiet and steady presence inside the country.

The suspension takes effect from midnight on Monday, Hay said, with an official suspension scheduled for Aug. 14, the firm’s 12-year anniversary.

Hay, who bills his firm as the only foreign-invested firm in North Korea, said he will still maintain an office in Pyongyang.

North Korea has more than 8,000 law graduates, according to an official 2008 census, half of whom are based in Pyongyang. Most are employed by the state.

Read the full story here:
North Korea’s only foreign-founded law firm suspends operations
Reuters
James Pearson
2016-8-1

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Foreign Trade report on the Nampho SEZs (Jindo, Waudo)

Wednesday, May 18th, 2016

Nampho-EDZs-Google-Earth

Pictured above (Google Earth): The approximate locations of the Waudo and Jindo Export Processing Zones

The North Korean quarterly magazine, Foreign Trade, published information on the Jindo and Waudo economic development Zones (straddling the Ryongnam Ship Repair Factory).

According to Foreign Trade (2016 vol 2, p6):

Economic development parks in the DPRK are booming recently.

The city of Nampho is conducting processing trade by relying on the bases in Jindo and Wau Islet, taking advantage of its favourable economic and geographical conditions.

As a gate city on the coast of the West Sea of Korea, the industrial city has an international port.

The city, situated on the lower reaches of the Taedong River, boasts metallurgical, machine building, glass-making industries, and lead and zinc refi ning, silk fabrics and shipbuilding bases.

It has the country’s biggest salt works and a fishing station, a fishing implements manufacturing factory and a refrigerating plant.

The Port of Nampho, the biggest of its kind in the western part of the country, is at the northern shore of the Taedong’s entrance to the sea. The water is deep, the port itself is far inside the estuary of the Taedong River and the dams of the West Sea Barrage stand high, assuring safe navigation by ships.

There are around ten major berths and crane ships, loading bridges and conveyor belts.

Wau Islet off the port is one of the famous tourist spots.

The port is linked with over a hundred foreign countries and regions for commercial trade.

Jindo Processing Trade Zone
The zone aims at producing various kinds of light industry and chemical goods made from duty-free raw materials for export.

Cooperation period: 50 years

Project plan: The coverage of the zone is about 1.8 sq km. By taking advantages of the Port of Nampho nearby and tens of years of development of the machine-building, electronical and light industries in Nampho, it processes various goods and exports them. Enterprises are admitted to it on the principle of conserving the environment and saving energy. It strives to develop new products and industrial fields, realize technical transfer with other countries and thus contribute to revitalizing the domestic industry. It is also making efforts to develop into a processing trade and bonded trade area.

Waudo Processing Trade Zone
The zone aims at developing into an intensive processing trade zone by introducing advanced development and operation mode and by placing stress on export-oriented processing and assembling.

Cooperation period: 50 years
Gross Investment: About USD 100,000,000

Project plan: The zone covers an area of about 1.5 sq km. By utilizing its favourable conditions, it puts main emphasis on bonded processing, processing to order, barter trade and other types of export-oriented processing industry.

It aims to develop into a comprehensive zone with financial, tourist, real estate and foodstuff industry bases in the areas around the port and the scenic area around the West Sea Barrage.

Cooperation mode: Joint venture between corporate bodies of the DPRK and foreign investors or wholly foreign-owned enterprises.

Location: Some parts of Ryongnam-ri, Waudo District by the estuary of the Taedong River southwest of the city.

Infrastructure condition: Only 50km away from Pyongyang and a few kilometres between the port, the biggest international port in the country, and the railway station.

From the port it is 330km to Dalian, 332km to Weihai, Shandong, 930km to Shanghai and 695km to Tianjin, China, and 1 575km to Chinese Taipei. The Youth Hero Road between Pyongyang and Nampho facilitates the few scores of kilometres of travel to the Pyongyang International Airport. These all provide favourable conditions for domestic marine transport and entry and exit of foreign personnel, materials and funds.

A 600,000kW-capacity power station and 10,000kW-capacity tidal power station are intended to be built near Kwangnyang Bay beside the West Sea Barrage. The Taedong fully guarantees water supply.

The site was formerly occupied by a salt farm, so problem of removing structures does not arise. The area is 40m above sea level and flat.

National Economic Development Guidance Bureau, DPRK Ministry of External Economic Relations
Add: Taedonggang District, Pyongyang, DPR Korea
Tel: 0085-02-381-5912
Fax: 0085-02-381-5889
E-mail: sgbed@star-co.net.kp

A screen shot of the original article can be seen here.

NK News has additional analysis here.

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Sinuiju International Economic Zone

Tuesday, December 1st, 2015

No sooner do I publish an article on the Sinuiju International Economic Zone (read it here at 38 North) than the DPRK releases more information on it.

In the December issue of Foreign Trade (2015 No.4), the DPRK includes information on the zone, including this map:

Sinuiju-SEZ-Foreign-Trade-2015-4-scan

UPDATE: Dr. Haggard uploaded a nicer version of the image which you can see here.

The map indicates that the downtown area of Sinuiju and the western coast down to the new Amnok River Bridge will constitute the first phase of development. Space has been allocated for trade, industry, sewage, warehousing, and other designated areas. The map also indicates a new road is to be built linking the Wihwado Economic Zone (to the north east of the Sinuiju SEZ) with the new Yalu River Bridge (which has yet to be opened for business) and Ryongchon County.

Here is a satellite image of the specific areas being designated for the first phase of the zone with proposed roads added for visual effect:

Sinuiju-SEZ-Google-Earth-2015-12-1

This is what the article had to say about the zone:

Sinuiju International Economic Zone

Located in a border area, the zone has a bright prospect for the development of water and marine transport. Its development area is 40km2.

The Zone is a flat area composed of deposits of organic fine sand in the mouth of the Amnok. The average height of ground inside the bank is 45m, geomorphology is 0-.7% and the average height above the sea level is up to 100m.

Its annual average duration of sunshine 2,427 hours, annual percentage of sunshine is 58% and annual average precipitation is 1001.5 mm.

The first and second annual main winds are northeast and and north winds respectively. It has the northeast and north winds in winter and southwest wind in summer in the main.

The Sinuiju International Economic Zone will provide opportunity for bonded processing, bonded transportation, trade and financial business, tourism, hi-tech industry, and various other business activities.

To this end, it is planned to develop the zone into a comprehensive economic zone with a large-sized latest IT industry area, competitive production area, exports processing area, cargo area, trade and financial area, public service area, tourist area and a bonded port, and into an international city with an airport and trade port.

Encompassing the whole of Sinuiju and two ri surrounding it, the zone is already furnished with infrastructure. However, it is necessary to upgrade the existing infrastructure and expand its capacity and build in its suburbs on a preferential basis.

The items of the construction of infrastructure include port, airport, railways, roads, power station, heating, and gas-supply system, telecommunications (international, domestic, mobile and computer network), and water supply, sewage-treating and garbage disposing systems.

As the zone has rich and good workforce whose education level is higher than secondary education, and many competitive heavy- and light-industry factories and enterprises around it, the investment by foreign business will be cost-effective and conducive to its development.

Previous posts on the Sinuiju International Economic Zone can be found here. Previous posts on the Sinuiju Special Administrative Region can be found here.

The North Koreans have also set up the Sinuiju-River Amnok Tourist Zone which you can read about here.

The JoongAng Ilbo has additional information here.

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Orascom (OTMT) loses control of KoryoLink

Friday, November 20th, 2015

UPDATE 1 (2015-12-11): Orascom CEO claims to still control KoryoLink, but cannot obtain hard currency or get it out of the country.

ORIGINAL POST (2015-11-20): Martyn Williams broke the story here.

The first problem is that Orascom could not repatriate its profits:

Orascom’s efforts to get its profits out of North Korea have been unsuccessful, partially because of international sanctions imposed on the country but mainly by the government’s refusal to let the money go.

To transfer money out of North Korea, Orascom needs permission from the government and it hasn’t been granted, despite it being a partner in the joint venture.

The government hasn’t acted because it can’t afford to.

The profits are held in North Korean won, but the currency isn’t traded internationally and the government’s official rate is set artificially high, at 100 won to the U.S. dollar. At that rate, Orascon’s holding at the end of last year was worth $585 million.

But at the black market exchange rate, which is effectively the real value of the currency in North Korea, the cash is worth only $7.2 million. And therein lies the problem. The government can’t afford to pay the money at the official rate, and it can’t be seen to officially recognize the black market rate. So the two sides have spent months locked in talks about what to do.

Secondly, the DPRK government launched a second cell phone network to compete with KoryoLink, and efforts to merge the companies have been successful:

The issue came to light in an auditor’s report in June, and a month later Orascom dropped a bombshell: It said the North Korean government — supposedly its close partner — had set up a second carrier to compete with Koryolink.

With its options limited, Orascom entered merger talks to combine Koryolink with the new carrier. The North Korean government has agreed to the move in principle, but so far nothing has happened.

What’s more, the North Korean government has apparently proposed that it be the majority partner in any new venture that’s formed.

That led to a dramatic statement from Orascom when it reported its financial results Monday — “in the group management’s view, control over Koryolink’s activities was lost.”

Sawiris appears to hold out hope, but he might be out of moves.

“We are very proud of the success of our operation ‘Koryolink’,” he said in a statement. “We have around 3 million people today carrying our phones in the DPRK. We are still hopeful that we will be able to resolve all pending issues to continue this successful journey.”

Anna Fifield also followed up in the Washington Post and reported on the name of the new KoryoLink competitor:

This comes after Orascom discovered that North Korea was starting a competitor to Koryolink called Byol, and then began discussions about merging it with Koryolink, thus presumably extracting even more money from Orascom.

Byol (별) translates to English as “Star”.

Here is the OTMT financial report which explains the company’s position (PDF).

Here are screen shots of the relevant sections in the report:

OTMT-report-2015-11-associate

And

OTMT-report-2015-11-other-operator

OTMT-report-2015-11-other-operator2

A small correction needs to be added to the OTMT report, the Central Bank does not set the official exchange rate. That is set by the Foreign Trade Bank.

As Marcus Noland and I have pointed out, North Korea needs a big FDI win to inspire more large-scale foreign investment and modernize its investment regulatory framework, but debacles like this, Xiyang, and the KIC (referring here to the fact that it was too entangled in political risk to be a reliable investment without official subsidies and guarantees) reinforce the view that the DPRK is still too risky to become an attractive investment hub–and this excludes additional problems owing to the country’s weapons programs and human rights abuses.

 

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Tumen Triangle tribulations: The unfulfilled promise of Chinese, Russian and North Korean cooperation

Thursday, November 12th, 2015

Andray Abrahamian has published a report with the US-Korea Institute on developments in the Tumen Triangle.

Here is the report description:

The Tumen Triangle region-where North Korea, China and Russia meet-is, in many ways, the story of regional integration being held back by the political concerns of Pyongyang, Beijing and Moscow. There are long-term forces at work here, such as Moscow’s concerns over Chinese dominance in the sparsely populated Russian Far East. This legacy of mistrust frames cross-border interactions and despite recent warm relations, major cross-border cooperation remains limited.

In this USKI Special Report, Andray Abrahamian, Director of Research at Choson Exchange examines historical legacies, contemporary relations and shifting strategic priorities between the three countries. The report then focuses trade and investment in the Tumen Triangle region, particularly how the Yanbian Korean Autonomous Prefecture and Primorsky Krai interact with and affect Rason Special City, the center of the Rason Special Economic Zone.

You can download the report here (PDF).

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North Korean and Chinese scholars clashing over North Korean business laws

Wednesday, September 23rd, 2015

By Benjamin Katzeff Silberstein

Yonhap reports about a seemingly interesting forum that has taken place in Beijing, sourcing Global Times reporting. The article is an interesting illustration of the divergent ways in which Chinese and North Korean scholars/analysts seem to view North Korea’s economic situation and business environment (my emphasis):

Scholars from North Korea and China recently held a forum where they remain at odds over whether the isolated North could attract foreign investors and protect them, according to state-run Chinese media.

North Korean scholars insisted that their country offer a raft of legal and financial incentives for foreign investors, but Chinese scholars raised doubts over the North’s efforts, as it is under U.N. sanctions over its nuclear and missile programs.

The three-day forum, held in the Chinese border city of Yanji, ended on Sunday, state-run Global Times newspaper reported on Tuesday.

Paik Il-sung, a legal professor at North Korea’s Kim Il-sung University, said that the North’s laws protect the property rights of foreign investors. Even if the rights of foreign investors undermine North Korea’s national interests, an “unavoidable confiscation” of their property would be carried out in accordance to laws, Paik said.

Choe Su-gwang, an economics professor at the North Korean university, said that North Korea allows foreign investors to arbitrate conflicts with the state throughout an arbitration panel.

Besides geopolitical risks, poor infrastructure was cited by Chinese scholars as one of main reasons for deterring foreign investment in North Korea.

Lin Jinshu, a professor from China’s Yanbian University, said China intends to build infrastructure in the North’s Rason special economic zone, but a lack of relevant accords prevents Chinese investors from doing so.

Rason was designated by North Korea as a free trade zone in 1991, but efforts by the North to bring life to the zone have failed amid geopolitical concerns.

A monthly usage fee for the Internet in the Rason economic zone is 7,000 yuan (about US$1,089), but the Internet there is slow as a “turtle’s pace,” Lin told the forum.

Zhang Huizhi, a professor at China’s Jilin University, also raised the question how North Korea could protect property rights of foreign investors in the event of a war.

Aside from the comment about an arbitration panel, it is notable that the emphasis by the North Korean side of the discussion, at least as reported in this piece, lies very heavily on legal text. It’s enough if written laws are good, seems to be the attitude, which is of course not the way most potential investors see things.

Read the full article:

Yonhap News

N. Korean, Chinese scholars at odds over investment in N. Korea

09-23-2015

 

 

 

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North Korea promotes French investment in cement company

Thursday, September 10th, 2015

Institute for Far Eastern Studies (IFES)

North Korea recently promoted its cooperation with foreign companies, highlighting a North Korean cement company that has received investment from a French corporation. This is viewed as a strategy by North Korea to attract foreign investment by publicizing examples of foreign capital in the country.

On September 1, 2015, North Korea uploaded an article on its foreign website ‘Naenara’ promoting the Pyongyang Sangwon Cement Joint Venture, which the French cement company Lafarge has invested in. President of the company Yun Chae Hyok was quoted as saying, “Through each other’s efforts the company is raising the quality of cement by expediting the modernization of the production process as well as increasing production to contribute actively to the country’s primary construction targets.”

Regarding the Sangwon Cement Joint Venture, the Naenara article stated, “The quality of limestone is good, the reserves are plentiful, and from a transportation perspective, the location is good […] The production process is automated, and the company is using supplementary materials, including limestone, in production, so the outlook is very good.” The article also introduced the company Lafarge. “The French building materials company Lafarge, which has more than 200 cement factories, is a corporation that specializes in the production of cement and plaster as well as aggregate and concrete,” it explained.

Naenara also reported that in 2014 the joint venture company built ‘Affiliate Furnace No. 1,’ and according to a decision made by the board of directors in June 2015, next year it will complete construction of ‘Affiliate Furnace No. 2.’ It is believed that North Korea’s intent in promoting the Sangwon Cement Joint Venture is to attract investment from other foreign companies by publicizing examples of foreign capital in the country.

The Pyongyang Sangwon Cement Joint Venture was created when Lafarge invested in North Korea’s Sangwon Cement Complex. In 2007 the Egyptian company Orascom, which is currently invested in North Korea’s Koryolink, acquired 50% of the shares in Sangwon Cement and prepared to invest in the company, but in December of that year it passed its shares and the related mining rights to Lafarge. At the time Lafarge commented, “Given the rapidly growing demand for cement in North Korea, the potential for Sangwon Cement Factory is large.” The company went on to update factory equipment and expand investment in machinery and facilities.

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Phoenix Commercial Ventures terminates its association with Hana

Thursday, September 3rd, 2015

According to the PCV web page:

As a result of irreconcilable differences between the board of Phoenix and the local management, Phoenix Commercial Ventures Ltd has terminated its association with Hana Electronics JVC with immediate effect.

Hana Electronics JVC was a 50/50 joint venture between Phoenix Commercial Ventures Ltd and the trading department of The Ministry of Culture.

Phoenix has no further connection with Hana or any interests (direct or indirect) in its operations.

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China Railway Investment Group

Tuesday, August 11th, 2015

According to NK News:

A Chinese-state affiliated and Singaporean investment group, the latter of which is allegedly directly connected to the DPRK, is calling for large-scale investment in 12 projects spanning nearly every major sector in North Korea, from transport to mining to internet and cable television development.

The ambitious plans, outlined in an August 2 press release from China Railway Investments Group, welcome foreign participation in 12 “world class opportunities” in North Korea.

“The Democratic People’s Republic of Korea (DPRK) through its window company Daegian Pte Limited of Singapore in cooperation with China Railway Investments Group Ltd (CRIG) has established a joint venture investment company in Hong Kong,” the press release says.

The joint venture, called Heuimang Investments Group Limited, will be capable of providing a “direct and exclusive conduit to the highest levels of decision making in the government of the DPRK,” the release continues. “Only the most significant of opportunities will be available through this channel which can only be accessed through Heuimang/Han Wang.”

Here is a PDF of the press release posted to the China Railway Investment Group Web Page.

Here is the full text:

韩旺投资集团有限公司
Heuimang Investments Group Ltd (In Chinese pinyin Han Wang Touzi Jituan Youxian Gongsi)
公告 Announcement:
发布时间:2015-8-2

朝鲜民主人民共和国(朝鲜)致力于大力推进其经济发展,并欢迎外国投资参与该国的世界级的机会, 促进经济发展.
The DPRK is committed to progressing its economic development, and welcomes the participation of foreign companies in investing in world class opportunities in the country.

朝鲜欢迎中国的公司投资参与. 朝鲜通过它在新加坡注册的窗口公司Daegian 私人有限公司, 与中铁多经投资集团有限公司合作在香港建立了融投资平台—招商公司.
The Democratic People’s Republic of Korea (DPRK) through its window company Daegian Pte Limited of Singapore in cooperation with China Railway Investments Group Ltd (CRIG) has established a joint venture investment company in Hong Kong.

朝鲜政府已正式批准Daegian 与中铁多经投资集团有限公司(CRIG)合作成立旺投资集团有限公司.
The DPRK Government has formally approved the joint venture between Daegian and CRIG and their joint venture company called Heuimang (or Han Wang in Pinyin Chinese) Investments Group Limited.

Daegian和韩旺是朝鲜”走出去“、”引进来“的直接和专属通道,是朝鲜政府最高等决策层的直属机构. 只有最显著的机遇将可通过这一渠道,而且只能通过韩旺办理.
Daegian provides a discrete, direct and exclusive conduit to the highest levels of decision making in the government of the DPRK. Only the most significant of opportunities will be available through this channel which can only be accessed through Heuimang/Han Wang.

朝鲜决定与中方共同搭建经贸等合作更方便更快捷的工作平台,利用香港的优势宣传推广、项目招商、商务服务,支援朝鲜建设。韩旺将在中朝两国间发挥经贸合作的强大和充满活力的桥梁作用.
Heuimang/Han Wang will concentrate on creating a strong and robust platform for economic and trade co-operation between the countries. It will also take advantage of the flexibility afforded to a commercial entity registered in Hong Kong.

各方股东及合作公司将依照国际法和国际惯例运作,在透明的基础上配套韩旺发展.
All parties to this joint venture are committed to supporting Heuimang/Han Wang in operating on a transparent basis within international laws and practices.

其主要目标是优势互补、资源共享、利益均沾、合作共赢、商业运作.
The primary objective is commercial engagement through mutual cooperation for shared benefit.

里程碑:
Milestones:

2015年1月29日: 中铁和Daegian 签订了框架合作协议, 其中确定了互惠和显著利于中国和朝鲜,尤其是基础设施发展的若干项目. 通过韩旺, 中铁致力于引领中国企业组成的联合体参加朝鲜民主人民共和国的经济和基础设施发展.
January 29, 2015: CRIG and Daegian executed a framework cooperation agreement which identified certain projects of mutual and significant benefit to China and the DPRK, particularly infrastructure development. CRIG is committed to lead through Heuimang/Han Wang a consortium of investors from China to participate in the economic and infrastructure development of the Democratic People’s Republic of Korea.

2015年3月20日:中铁和Daegian签署公约设立融投资控股公司,以协调和管理投资朝鲜.
March 20, 2015: CRIG and Daegian signed a convention to establish an investment holdings company to coordinate and manage investment in the DPRK.

2015年4月8日: 朝鲜政府的执行委员会正式批准为创建韩旺作为的中铁和Daegian 之间的合作平台公司.
April 8, 2015: The Executive Committee of the DPRK Government granted formal approval for the creation of Heuimang/Han Wang as the joint venture company between CRIG and Daegian.

这是中国- 朝鲜最高领导人讨论2010年5月的巅峰之作, 于经贸合作,成立一个指导委员会,共同开发和管理提名的项目, 包括特别经济贸易区.
These represent the culmination of China-DPRK economic and trade cooperation discussions dating back to May 2010, when the top leaders of both countries established a steering committee to jointly develop and manage nominated projects,including special economic trade zones.

基本的经济发展计划是底层要求支持能力建设,机构规划和物流相关立法的起草工作。此外,为提高海关程序,通信和赞助农业和其他指定项目在朝鲜.
Fundamental to the programme is the underlying requirement to support capacity building, institutional planning and logistics and the drafting of relevant legislation. Also, to improve customs procedures, communications and sponsor agriculture and other specified projects in the DPRK.

中国和朝鲜都致力于取得进展的合作和友谊通过鼓励基于一个企业的市场经济的互利两国人民.
China and the DPRK are committed to progressing their cooperation and friendship by encouraging an enterprise based market economy for the mutual benefit their two peoples.

韩旺利用中国政府鼓励中国企业“走出去”、以及建立境外经济贸易合作区的各种优惠政策,支持朝鲜建设,开发前述项目。
In supporting the DPRK in the development of the nominated projects (see below), China Railway will be taking advantage of the preferential policies of the Chinese Government’s ‘Go Global’ strategy and its model of ‘co-operation between nations’ to create Economic and Trade Cooperation Zones.

提名项目:
Nominated Projects:

下面的项目已被选定为首批发展:
The following have been selected for initial development:
1. 罗先经济贸易区等经济贸易区
Rason Economic Trade Zone and other Special Economic Trade Zones
2. 罗津港, 运输和物流
Rajin Port, Transport and Logistics
3. 东海岸高铁和互连服务
East Coast High-speed Rail and interconnecting services
4. 发电厂和服务
Power Generation
5. 国家石油和天然气战略计划,包括
National Oil and Gas Strategy, including
a. 现有的两个炼油厂和技术升级翻新
Refurbishment of the two existing refineries and technological upgrade
b. 更多的处理能力,存储和仓储设施建设,以满足当地和出口需求
Construction of more processing capacity and storage and warehousing facilities to meet local and export demand
c. 贸易销售和市场营销
Trade sales and marketing
d. 勘探和开采当地资源
Exploration and exploitation of local reserves
6. 黄金开采和加工;以及建立金银行
Gold mining and processing; and establishment of a gold bank
7. 稀土的开采和加工
Rare earth elements mining and processing
8. 金属和矿物开采和加工,包括:
Metals and minerals mining and processing including:
a. 铁钢 Iron and steel
b. 锌Zinc
c. 钨Tungsten
d. 锡Tin
e. 菱镁矿 Magnesite
f. 石墨 Graphite
g. 煤Coal
9. 电信和有线电视
Telecommunications & cable television
10. 互联网服务, 国家经济信息电子中心及电子支付平台
Internet services, a national information centre and electronic payment platforms
11. 金融服务,包括一个完整的商业全服务银行和保险
Financial Services including a full commercial full services bank and insurance
12. 农业包括菌草种植, 牛羊养殖和捕鱼,
Agriculture including bacteria grass, sheep and cattle breeding and fishing
和等项目,招商引资开发.

附加信息:
Additional Information:
罗先经济贸易区和罗津港: 由罗先经济合作局管理,位于朝鲜北东部,毗邻中国吉林省延边地区. 罗先的主要商业机会是罗津港,该港作为主要的物流和交通枢纽为东北亚的潜力. 中国、俄罗斯、蒙古承认其优点,罗津港可提供最北端的全年温水冷冻自由港. 俄罗斯和蒙古已经从罗津港运送大宗商品,通过铁路连结由俄罗斯建造的港区.
The Rason Economic Trade Zone and Rajin Port: is managed by the Rason Economic Cooperation Bureau, located in the North-East of DPRK, adjacent to the Yanbian area, Jilin province, China. The major commercial opportunity in Rason is the potential that Rajin port offers as a major logistics and transport hub for north-east Asia. China, Russia and Mongolia acknowledge the advantages that the northern most all-year round port can provide. Russia and Mongolia are already shipping bulk commodities from Rajin through a railway link built by Russia.

拟议的铁路连接新丝路网络,将为中国东部、俄罗斯、韩国、日本, 进入中亚欧洲及其他新兴经济体. 一个便捷的陆路货物通道,这将减少旅行时间只需15天,而不是原来45天的海上运输,太有吸引力了, 区域商家不能忽视.
A proposed rail connection to the New Silk Road network will provide Eastern China, Russia, South Korea and Japan access to the emerging economies of Central Asia and Europe beyond. A land route for the transport of goods that will reduce travel time to just 15 days as opposed to 45 days by sea will be too attractive for regional manufacturers to ignore.

罗先的潜力作为一个主要的工业和商业中心,是由计划的石油和天然气管道从西伯利亚到韩国釜山而增强. 坐落在通往发展最快、最具活力的世界经济区域上,它是一个可预见的展示,可以肯定的未来,罗先会成为最重要的区域之一。
Rason’s potential as a major industrial and commercial centre is further enhanced by the planned oil and gas pipeline from Siberia down to Pusan in South Korea. Situated as it is at the gateway to the fastest growing and most dynamic economic region in the world, it is a virtual certainty that Rason will become one of the most important cities in the region.

有许多小到中型中外合资企业已经建立在罗先. 这是肯定的, 由于贸易的增加, 这将很快被更大的企业来加盟。
There are many small to medium sized foreign joint ventures already established in Rason, which will soon be joined by larger enterprises that will inevitably follow as trade increases.

中国企业有数十家与朝鲜公司在进行经济和贸易活动,在建材、食品加工、机械、金融、投资、物流等领域谈判合作。交通运输集团,中国铁建集团,中国招商局集团,亚洲集团等大型企业纷纷表示了在罗先经贸等各领域的兴趣.
Dozens of Chinese enterprises are in negotiations with North Korean companies for economic and trade activities in building materials, food processing, machinery, finance, investment, logistics and other fields. Transportation Group, China Railway Construction Group, China Merchants Group, the Asian Group and other large enterprises have expressed interest in the Rason economic and trade areas.

中国的北大荒集团在朝鲜建立了一个高效的农业科技示范园区500公顷的水稻种植实验.
The Beidahuang Group of China set up a highly efficient agricultural demonstration zone, 500 hectares of rice growing experiments.

该商业机会将只能通过韩旺可用.
The commercial opportunities will only be available through Heuimang.

朝鲜国家石油和天然气战略: 是赖以投资者可以利用朝鲜的优越位置,并推出营销活动成为东北亚地区的重要平台。朝鲜有两个炼油厂,其中只有一个目前正在运作。
DPRK’s National Oil and Gas Strategy: is the platform upon which investors could take advantage of the DPRK’s location and launch a marketing campaign into north-east Asia. The DPRK has two refineries only one of which is currently operational.

在新义州的蓬华炼油厂每年生产的柴油和汽油约150万吨, 这是满足本地区的需求远不够的. 该炼油厂坐落在一个很好的位置,跨过鸭绿江丹东,那里有一个油码头和管道组成的国际网络的支线
The Bungwha [Ponghwa] Refinery in Sinuiju [Note: it is in Phihyon, not Sinuiju] produces about 1.5 million tonnes of diesel and gasoline a year which is well below local demand. It is well situated across the Yalu River from Dandong where there is an oil terminal and a spur line of an international network of pipelines.

韩旺拥有的授权权利,新指定的特殊经济贸易区,位于在鸭绿江河口的新都岛。这里是理想的建立一个油库和新的处理设施之地.
Heuimang holds rights to a newly designated special economic trade zone which is Sindo Island in the Yalu estuary. The site is ideal to create a tank farm and new processing facility.

罗先的胜利炼油厂在东北部,已有20多年经营,现停止,由于缺乏原料和适当保养及维修。它最初被设计为每年生产各种石油化工产品2.0万吨。罗津和罗先潜力将见证燃料和某些石化产品必须满足该地区日益增长的需求.
The Seungri Refinery in Rason in the north-east, has been silent for 20 years for a lack of feedstock and proper maintenance and repairs. It was designed to produce 2.0 million tonnes a year of a variety of petrochemical products. The potential that is Rajin/Rason will see a growing demand for fuel and certain petrochemical products in the region which must be met.

金属和矿物: 矿产开采和加工是朝鲜经济的支柱. 通过韩旺的国家协议的过程中,任期安全是有保证的,因为它的设计满足国际融资需求。有铁矿石,煤,金,菱镁矿,石墨,稀土元素和许多世界级的沉积物。
Metals and Minerals: mining and processing is the backbone of the DPRK economy. There are world class deposits of iron ore, coal, gold, magnesite, graphite, rare earth elements and many more. Through Heuimang’s state agreement process security of tenure is assured as it is designed to satisfy international financing requirements.

详细信息,请联系:
For more information, please contact:

(1) 与中铁投资集团有限公司, 主席, 王先生
Mr. Wang Jing, Chairman of China Railway Investments Group Ltd
电子邮件Email: crighk1@gmail.com

(2) Daegian 私人有限公司, 主席, Rudi Sirr先生
Rudi Sirr, Executive Chairman of Daegian Pte Ltd
电子邮件Email: rudi.sirr@daegian.com

(3) 韩旺投资集团有限公司, 首席执行官, 沈思翠小姐
Jyn Sim Baker, Chief Executive Officer of Heuimang Investments Group Limited
电子邮件Email: jynbaker@crimsonant.com

Here is additional reporting in NK News and by Marcus Noland.

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Joint NK-Russia pharmaceutical company revamps operations

Tuesday, July 21st, 2015

According to the Daily NK:

Python, a joint company between North Korea and Russia, which had manufactured health supplements during Kim Jong Il’s era, has recently renewed its contract and is set to manufacture products using materials produced in North Korea, Daily NK has learned.

“Python closed down due to financial difficulties but has recently renewed its contract with North Korea,” a source in Russia told Daily NK. “On the 7th, the North Korean consul general and the deputy prime minister of Zabaykalsky Krai signed related contracts to operate the Python factory.”

An additional source in Russia confirmed this development.

The factory, located in Russia, is currently shuttered due to financial restraints, but the North Korean state authorities have been providing cadres dispatched to the facility for management with living expenses. The source said the factory is expected to give the Russian city Chita a boost in its local economy, helping to propel the deal.

“Before production ground to a halt, Python had been sending hefty sums of money to North Korea. Russia can also rake in profits from the company, so neither wants to give up on the endeavor,” the source speculated. “Once production begins, North Korea will select and dispatch workers to Russia who will produce medicine and health supplements.”

He added, “We can’t tell exactly how much was being made from the production, but former workers say under normal operations, the sum going to the North was significant,” the source said, noting that North Korea is surely hoping the deal can try to make in a dent in the dearth of state foreign-currency funds.

“In the past, Python mainly produced health supplements, such as ‘baljam’ (herbal wine) and ginseng extract,” he explained. “But after Russia was introduced to capitalism, financial, ideological, etc. difficulties emerged and operations took a toll. Over the past few years, only a few North Korean managers have been left behind.”

He added that the North Korean laborers who worked at Python were guaranteed housing and food in addition to receiving a monthly salary of 50 to 60 USD, and given that the organization is a pharmaceutical company, most of the Party cadres dispatched there are college graduates; some researchers were sent with their families as well.

Meanwhile, earlier on the 14th, Radio Free Asia [RFA], citing Russian internet publication ‘Business Buryatia,’ also reported that “North Korea and Russia are planning to co-produce medical products in Chita, a city in Eastern Siberia as early as before the end of this year.”

Read the full story here:
Joint NK-Russia pharmaceutical company revamps operations
Daily NK
Kang Mi Jin
2015-07-21

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