Archive for the ‘Special Economic Zones (Established before 2013)’ Category

Rajin – South Korea water shipment

Monday, December 7th, 2015

According to Yonhap:

Containers carrying bottled water produced near North Korea arrived in South Korea on Monday via a North Korean port as part of a three-way logistics project involving the two Koreas and Russia, government officials said.

Ten containers full of bottled water produced at Erdaobaihe in northeastern China arrived at Busan, South Korea’s southeastern port city, earlier in the day after leaving from the North Korean city of Rajin bordering Russia, officials said.

The mineral water was produced at a factory run by Nongshim, South Korea’s largest noodle maker, in Erdaobaihe, a town close to Mount Baekdu in North Korea, the highest peak on the Korean Peninsula.

The shipment is part of the two Koreas’ third pilot operation of the project, which calls for shipping some 120,000 tons of Russian coal to three South Korean ports from the North Korean port city of Rajin.

The coal, which was transported from Russia’s border city of Khasan on a re-connected railway, arrived in South Korea in late November.

The so-called Rajin-Khasan logistics project is a symbol of three-way cooperation and an exception to Seoul’s punitive sanctions against Pyongyang following the North’s deadly sinking of a South Korean warship in 2010.

In November 2014, the first shipment carrying 40,500 tons of Russian coal arrived in South Korea without incident in the first test run of the project. The second test was conducted in April.

The project is also part of President Park Geun-hye’s vision for a united Eurasia, known as the Eurasia Initiative, which calls for linking energy and logistics infrastructure across Asia and Europe.

Read the full story here:
Containers carrying bottled water arrive in S. Korea via N. Korean port
Yonhap
2015-12-7

Share

New taxes to kick in for KIC firms

Wednesday, November 4th, 2015

According to Yonhap:

South Korean firms operating in North Korea are required to pay a land use fee starting this year, officials here said Wednesday, after a decade of exemption.

The relevant authorities of the two Koreas will soon begin talks on how much more the 120 South Korean companies in the Kaesong Industrial Complex should pay, they added.

Launching the facilities in 2004, the North agreed to exempt the South from a land use fee for a decade. The measure expires this year.

“It’s a kind of tax to be paid once a year,” a Unification Ministry official said. “Thus, the North’s Central Special Development Guidance Bureau and the South’s Kaesong Industrial District Management Committee should begin consultations before long.”

The two sides recently ended months of negotiations on the level of wages for around 53,000 North Korean workers in the Kaesong zone near the inter-Korean border.

They agreed on a 5-percent increase in minimum wages from US$70.35 a month.

Read the dull story here:
S. Korea to pay ‘tax’ for Kaesong complex
Yonhap
2015-11-4

Share

DPRK tourism revenue estimates

Sunday, November 1st, 2015

According to Yonhap:

North Korea earned tens of millions of dollars from foreign tourists in 2014, around half of the hard currency it won from the lucrative inter-Korean industrial park, a researcher said Sunday.

North Korea’s income from foreign tourists is estimated at US$30.6 million to $43.6 million last year, considering about 95,000 Chinese tourists and 5,000 tourists from Western countries visited the country, Yoon In-ju of the Korea Maritime Institute said in a paper.

North Korea’s annual income from the Kaesong Industrial Complex in the North’s border town of Kaesong, accommodating 124 South Korean firms that employ more than 50,000 North Korean workers, reached $86 million in 2014.

North Korea has launched a drive to woo foreign tourists since leader Kim Jong-un assumed power in 2011 by introducing a variety of tour packages that give participants sports, military and labor experiences.

North Korea, however, lacks enough infrastructure, such as transportation and lodgings, to attract foreign tourists, Yoon said, adding the North’s policy of allowing only group tours and limiting tourist destinations also serve as obstacles to foreigners investing in infrastructure, as well as tourists.

I have not read the report, and have been unable to find a copy in English, but I want to highlight that there is a difference in the kind of revenue that is earn from tourism versus from the KIC.

The KIC earns $US in cash, which are delivered from the South Koreans to the North Korean government. Because South Koreans cover all the expenses in the KIC, the DPRK government’s gross take effectively equals net take (100% of proceeds). However with tourism, gross take  is not what the government actually receives. Tour operators take a cut, KITC takes a cut, guides take a cut, restaurants and hotels take a cut. Local governments take a cut. Of course how the average tourist dollar is divided up remains a mystery, but it is not anywhere near the government’s 100% share that the KIC draws.

This distinction may have been addressed in the paper, but the Yonhap report did not make that clear.

Read the full story here:
N. Korea’s income from tourism half of that from Kaesong complex
Yonhap
2015-11-1

Share

Kaesong Complex’s cumulative output reaches USD$3 billion

Monday, October 12th, 2015

Institute for Far Eastern Studies (IFES)

The Kaesong Industrial Complex has reached 3 billion USD (3.5 trillion won) in cumulative output since it started operation 11 years ago. According to the Ministry of Unification, between 2005 (when operation went into full swing) and July 2015, the complex’s total output reached 2,996,160 USD.

This year the Kaesong complex recorded a total of 320 million USD in output through July, an average of 46 million USD each month. This guarantees that cumulative production surpassed 3 billion USD sometime in August.

The annual output of the Kaesong Industrial Complex started at 14.9 million USD in 2005 and reached 180 million USD in 2007, exceeding 100 million USD for the first time.

Except for 2013 (when operations were suspended for about five months), output has grown rapidly each year since 2007, shooting up to 470 million USD last year.

While it took the complex five years to reach 1 billion USD in cumulative output, it took only three additional years to surpass 2 billion USD by 2013, and just two more years to exceed 3 billion USD.

If the complex can maintain a similar rate of output in the second half of this year as in the first half (it produced 278 million dollars-worth in the first half), this year it will surpass an annual output of 500 million USD for the first time.

Even between March and May of this year, when tensions were heightened due to North Korea’s demands for a unilateral minimum wage increase, production was up 10-20 percent over the previous year. Thus, the Kaesong Industrial Complex has maintained a stable growth rate.

The number of resident companies at the complex has also increased significantly. While in 2005 only 18 companies did business at the complex, currently there are 124. Furthermore, the number of North Korean workers at the complex has risen nine-fold, from 6,000 at the beginning of its operation to approximately 54,000 at present.

Looking at the Kaesong complex companies by industry, textile companies account for over half of companies at 58 percent; machinery metal companies account for 19 percent; electronics companies, 11 percent; and chemicals companies, 7 percent.

The cumulative number of people who have visited the Kaesong Industrial Complex reached 1,100,000 this August, while 723,000 vehicles have visited the complex.

Share

Kaesong output reaches US$3 billion

Monday, October 5th, 2015

According to the JoongAng Ilbo:

The Kaesong Industrial Complex’s accumulated production value is expected to have hit the $3 billion mark, more than a decade after its launch, according to government data.

As of the end of July, accumulated manufactured goods were valued at $2.99 billion, with average monthly production output hovering at around $46 million.

Accumulated production value was thought to have surpassed $3 billion sometime after July.

 

…The volume of manufactured goods at the Kaesong Industrial Complex has increased annually since its opening, except for in 2013, when it was temporarily shut down for five months amid tensions on the peninsula. In 2008, the complex surpassed the $200 million mark in production and continued to expand yearly production levels to reach $469 million in 2012.

Due to the temporary shutdown, the complex saw its annual production drop down to $223 million in 2013, though it bounced back to $469 million the following year.

The number of North Korean workers employed by South Korean firms has gone up, from 7,621 in 2005 to 53,947 in 2014, according to data by the Ministry of Unification.

Here is coverage in Yonhap.

Read the full story here:
Kaesong’s accumulated output at $3B
JoongAng Ilbo
Kang Jin-Kyu
2015-10-5

Share

Inter-Korean trade returns to pre- May 24 sanctions levels

Thursday, September 3rd, 2015

According to Yonhap:

Inter-Korean trade in the first seven months of this year recovered to levels before Seoul imposed blanket sanctions against the North for the sinking of its naval ship, government data showed Thursday, thanks to increased exchange via a joint industrial complex.

According to the Korea Customs Service (KCS) data, the value of cross-border trade reached US$1.53 billion in the January-July period, which is roughly on par with $1.56 billion reported for January-July of 2009. The total also marks a 22.4 percent increase from $1.25 billion worth of goods traded in 2014.

In the seven-month period, South Korea shipped some $716 million worth of intermediate goods and components to the North and brought in $816.5 million in assembled products.

The increase was attributed to a rise in the unit cost of products traded through the joint industrial park in the North’s border city of Kaesong.

Two months after the North’s deadly torpedoing of the Navy ship Cheonan in March 2010, Seoul slapped the sanctions on Pyongyang, severing almost all exchanges with the communist North.

In 2010, trade between the two Koreas plunged to just over $1.14 billion, while in the following year, the figure fell to just under $11.2 billion. Trade figures rose to around $1.27 billion in 2012, but nosedived again to $604 million in the following year after Pyongyang pulled out its workers from Kaesong, effectively shutting down the complex for five months.

Almost all of the trade during the seven-month period centered around the Kaesong industrial complex just north of the demilitarized zone that separates the two Korea.

The zone, which was excluded from the sanctions, is home to more than 120 South Korean companies that employ about 55,000 North Korean workers. It was created following the landmark 2000 inter-Korean summit and first churned out products in late 2004.

Besides the exchange via Kaesong, the KCS said there is no other meaningful trade between the two sides, since the sanctions cut off most exchanges with the North, including tourism, commercial transactions and private aid. Even the Kaesong complex is affected because no new investments are permitted.

Related to the rise in trade, Chung Ki-sup, the chairman of the Kaesong Industrial Complex Companies Association, which represents the interests of local firms operating in the North Korean complex, said he wants the two Koreas to hold talks that would ease restrictions.

“Despite the increase in trade, it is fundamentally impossible to expect any real change under the present circumstances,” the entrepreneur said. He pointed out that more trade with the North can benefit the South Korean economy in a period of slow growth.

Read the full story here:
Inter-Korean trade returns to pre-sanctions levels
Yonhap
2015-9-3

Share

DPRK insurance market updates

Monday, August 17th, 2015

UPDATE 2 (2015-10-23): The Institute for Far Eastern Studies (IFES) reports on additional developments in the DPRK’s insurance industry:

North Korean Insurance Company to Expand Insurance Offerings

On October 14, 2015, the state-owned North Korean insurance company, Korean National Insurance Corporation (KNIC), promoted its ongoing insurance programs at the Kaesong Industrial Complex, revealing that it will offer more types of insurance if North-South economic cooperation expands in the future.

As North Korea’s market economy has expanded under the Kim Jong Un regime, insurance aimed at the ‘protection of assets’ has also increased.

“In order to actively ensure joint economic development projects between the North and South using the economic space of insurance, in 2005 we started insuring the assets of businessmen from the South who come to the Kaesong Industrial Region,” KNIC announced on its homepage on October 14.

The company explained, “The types of insurance currently implemented are fire insurance, car insurance, and gas accident liability insurance […] In the future several insurance sectors will grow further commensurate with the increasing variety and expansion of North-South economic cooperation projects.”

The company emphasized that in the future it will offer insurance programs more practical for South Korean businesses at the Kaesong Industrial Complex.

KNIC has also recently introduced new insurance products covering things like cell phones and fruit orchards.

However, Kaesong companies have reportedly not been enthusiastic about the products offered by KNIC. Not only is it difficult to trust the ability of North Korean insurance companies to pay out insurance money in the case of an insurance claim, but the insurance money itself is small. As a result, South Korean companies at Kaesong have been reluctant to enroll.

Meanwhile, KNIC revealed that it is strengthening its fire insurance services in accordance with North Korea’s recent construction of a number of new buildings such as the Masikryong Ski Resort, the Mirim Horse Riding Club, and the Pyongyang Sunan International Airport terminal.

“As we work to realize fire insurance guarantees of newly built or remodeled buildings in a timely manner, we are ensuring that insured companies are equipped with fire alarms and fire extinguishing facilities and experience improvements in risk management,” the insurance company declared.

It added, “We are also bringing in internationally recognized appraisal companies along with domestic appraisers to make sure that risk assessments of new insurance subjects proceed normally on-site.”

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

Golden Triangle Bank pre-pay cards

Tuesday, August 11th, 2015

Aram Pan visited the new Golden Triangle Bank building (it has recently moved offices) in Rason and took some interesting pictures of the interior.

DPRK-360-golden-triangle-1 DPRK-360-golden-triangle-2

DPRK-360-golden-triangle-3 DPRK-360-golden-triangle-4

However, my favorite is probably the giant pile of new US $100 notes:

GTB-DPRK-360-cash

That looks like $1.8 million to me. When was the last time you saw that much cash sitting on a counter?

Mr. Pan also shows that the Golden Triangle Bank has established a pre-pay card (similar to the Narae Card or the Koryo Bank Card). I say “pre-pay card” (not debit card) because a debit card is linked to a personal account whereas a pre-pay card is drawn from a bank-owned account. I do not suspect that card holders have actually opened personal accounts at these banks but have instead topped off a card that draws from a bank-owned account (In other words, I don’t think it is easy to get your cash back, and the bank earns the float from investing the currency while the card holder carries a positive balance).

GTB-card-DPRK360-2015

Mr. Pan claims to have put RMB25 into his account, which can be spent in the Rason SEZ, but not outside of it.

Here is a closeup of the front and back of the card:

Golden-Triangle-Bank-Debit-card-2015-edited

 

Here is a translation of the card:

GTB-debit-card-translation

“Seon Bong” is how a South Korean translates “Sonbong”.

The card appears to be equipped with an EMV chip. I am not sure how that works.

UPDATE (2015-8-17): The Daily Mail did a follow up piece here.

Share

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: [email protected]

(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: [email protected]

(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: [email protected]

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

Share

Real estate and insurance laws adopted for SEZs

Wednesday, July 22nd, 2015

According to KCNA:

Rules of Real Estate and Insurance in EDP Adopted

Rules of real estate and insurance in the economic development parks (EDP) were adopted according to the decision of the Presidium of the Supreme People’s Assembly of the DPRK.

The rule of real estate consists of seven chapters and 59 articles and the rule of insurance four chapters and 52 articles.

The rules deal with possession, registration and employment of real estates, their rent and rate, conclusion of insurance contract, formalities of insurance offices, etc. in the EDP.

Share