Rogers calls on Kim Jong-un to follow Chinese model
Legendary investor says will invest in North Korea once sanctions are cleared
By Kim Jae-kyoung
SINGAPORE ― Legendary investor Jim Rogers has called on North Korean leader Kim Jong-un to take a cue from China to open up his country's economy and engage with the international community.
He believes there are a couple of models North Korea can follow, but China would be the best one to ensure its successful transition without major hiccups.
Jim Rogers
“Kim should use the Chinese model because the Chinese are his friends and mentors and they are there,” Rogers, chairman of Rogers Holdings, said in a recent interview with The Korea Times .
The interview was conducted at his residence in Singapore after the historic June 12 summit between U.S. President Donald Trump and Kim Jong-un.
“He should start with the Chinese model for running and directing most things, with entrepreneurs allowed to make their own money,” he said.
His advice to the North's recalcitrant leader did not come just from his gut feeling but from his own practical experience.
“The last time I visited the North, I went to market and there were hundreds of stalls, entrepreneurs, selling everything you can imagine,” he said.
“So they know how to be entrepreneurs. The Koreans have a century of knowing how to be capitalists and entrepreneurs. So they know what to do. They just need to be given a hint, just as they were in China.”
In Rogers' view, the China model will work in favor of the isolated country. Rogers is one of the world's three most famous investors together with George Soros and Warren Buffet.
“I can't say that the Chinese model is right or wrong, but it might work. It would not be suddenly opened like Poland but the state will control and support the entrepreneur,” he said.
“They would have all the support from China, and South Korea would be happy to do it that way too. That was also the model in the early days in Singapore and South Korea.”
The 75-year-old multimillionaire investor pointed out North Korea has been sending people to Singapore for the past several years to learn about market economies, including entrepreneurship, private property and stock markets.
“So obviously there are people who would lean toward the Singapore model more, but it is also similar in some ways to the South Korean and Chinese models as well.
Singapore summit, turning point
Known as a big fan of Korea, Rogers said the Singapore summit marks a big step on the long road to the North's denuclearization and peace on the Korean Peninsula.
His optimism comes as many are still suspiciously awaiting Pyongyang's next move. Kim has vowed to denuclearize the North, but has yet to unveil a detailed framework and timeline.
The Singapore-based investor believes the landmark gathering is a clear indicator that the war is over and unification is coming, so he is ready to invest big bucks in North Korea as soon as international sanctions are removed.
Jim Rogers holds a Korean national flag with gat, Korean traditional hat made with horsehair, on, at his residence during a recent interview. He said that Korea will be one of the most exciting countries in the world once unified. / Korea Times photo by Jeong Min-seung
Rogers, who said three or four years ago that everybody should buy land in the DMZ, expects unification could come within two, three or four years.
“This is what I have been expecting for some time. So it is very good news for Korea, for the world, for Asia and for everybody,” he said.
The summit made Rogers lower his bottom line for investments in the reclusive regime. He has been saying he was willing to invest all of his assets in North Korea once the two Koreas are unified.
“Now I can't invest because it's illegal. When it's legal for Americans to invest in North Korea, I want to. It doesn't have to be unification. If the legal barrier is cleared, I would invest,” he said.
“An open North Korea would be very, very cheap. It would be one of the cheapest countries in the world but it is between China and South Korea ― it's got two very, very rich neighbors.”
Regarding the U.S. and South Korea's decision to halt joint military exercises, Rogers said it was a step in the right direction.
“I think this is a brilliant move. I have actually advocated it before to the South Korean government,” he said.
Describing the joint exercises as “total insanity,” he asked, “South Korea and America have been doing those exercises every year for 50 years. If they stop for one year, how is it going to weaken anything?”