8 in 10 firms willing to invest in North Korea

By Lee Hyo-sik

Eight out of 10 companies here would be willing to do business in North Korea following unification. They would prefer to establish a presence in Gaeseong, Haeju and Pyongyang, while engaging in the areas of natural resources exploration and infrastructure development.

According to a survey of 500 companies released by the Korea Chamber of Commerce and Industry (KCCI), Monday, 87.2 percent said they would push ahead with business projects in the North after unification. Only 12.8 percent responded negatively toward business in the reclusive state.

By cities, Gaeseong, Haeju and other cities just north of Gyeonggi Province are preferred by businesses, followed by Pyongyang and its nearby cities. Nearly three out of 10 companies said they are interested in developing natural resources in North Korea, while others expressed interest in undertaking infrastructure projects and running manufacturing plants north of the border.

About 87.6 percent said the government should lift economic sanctions it imposed on the North in 2010 following the reclusive state’s torpedoing of the frigate Cheonan, which killed 46 sailors onboard.

“We should resume inter-Korean economic projects to help boost the North’s economy. Then we can significantly lower the costs of unification when it happens,” said Jeon Su-bong, head of the KCCI’s research division.

“As much as inter-governmental cooperation, private-sector exchanges are important to improve inter-Korean relations. The KCCI will find ways to boost cooperation with its North Korean counterpart to make it easier for companies from both sides to work together,” Jeon said.