朝鲜商业月刊 ： 2013 年 2 月

DPRK Business Monthly Volume IV, Issue 1, February 2013

Key Developments:

• International Investment: A Chinese company, Weijin Investment Group, is investing $20 million in North Korea's gold mining industry and a luxury hotel. This is the first such investment by a Hunan-based Chinese company in North Korea. The mine, located in Unsan County, North Phyongan Province, has gold reserves of 50 tonnes.

• Economic Ties with Russia: Russia is planning to build a gas pipeline through North Korea, which will generate approximately $100 million annually in transit fees. This pipeline is part of ongoing discussions between Russia, North Korea, and South Korea, and aims to increase economic ties despite a small current trade level.

• Expansion of Business Ventures: Phoenix Commercial Ventures has regained rights to the Sinji brand, originally launched in 2005 as a software development company. The company has diversified its business into retail, software, artificial flower manufacturing, and renewable energy products.

Challenges and Issues:

• Sanctions and Isolationism: Tightening UN sanctions and international isolationism have made conducting business in North Korea increasingly difficult. These measures, intended to target the leadership and military, inadvertently affect normal trade and daily life for North Koreans and foreign businesses.

• Sanctioned Capital Projects: Despite efforts to modernize infrastructure, such as a water supply and drainage system, international aid and projects are hindered by US sanctions. For example, a Kuwait Fund for Arab Economic Development project aimed to overhaul the system but faced challenges due to the US embargo.

Highlights:

• Chinese Investment in Mining and Tourism: The announcement of a significant investment in North Korea's gold mining and hospitality sectors marks a notable shift in international interest.

• Russian Gas Pipeline Initiative: Plans for a gas pipeline through North Korea suggest potential economic benefits and increased trade relations, though execution faces logistical challenges.

• Phoenix Ventures' Brand Recovery: The reacquisition of the Sinji brand showcases the resilience of domestic foreign joint ventures in North Korea, despite previous setbacks in achieving global market dominance.

These developments highlight the complex interplay between international investment, economic diplomacy, and the constraints imposed by sanctions in the context of North Korea's business environment.