I am an editorial writer at The Korea Times, focusing on foreign policy, North Korea and domestic politics. My key areas of interest include North Korea, foreign interference in elections, election integrity, cyberattacks and human rights. Prior to joining the Editorial Board, I served as both Politics Desk editor and Culture Desk editor. During my career, I have reported on the Presidential Office under the Lee Myung-bak administration, the Ministry of Foreign Affairs and the National Assembly.
North Korea - last-remaining bonanza for investors
Book presents rosy prospect for sanctions-free North Korea
By Kang Hyun-kyung
What would North Korea be like if the layered sanctions ― which were imposed on the country for past provocative actions and now make it harder to improve the impoverished economy ― were lifted?
Will it be a “tremendous economic power” as U.S. President Donald Trump described during his summit with the North Korean leader Kim Jong-un in February in Hanoi, Vietnam?
These are not easy questions to answer, partly because few people outside the “Hermit Kingdom” are knowledgeable enough to judge whether or not it has a sufficient infrastructure to drive its economy forward.
Predicting the fate of a sanctions-free North Korea appears to be meaningless at the moment too, because as we saw in the breakdown of the Trump-Kim talks in February, there is still a deep perception gap between North Korea and the rest of the world regarding the dismantlement of the North's nuclear program.
Despite the gloomy prospect for a nuclear-free North Korea, lawyer Chung Min-kyu encourages investors, as well as jobseekers, to be prepared for the post-sanctions North Korea and be the early entrants in the market.
“Time to Invest in North Korea” by Chung Min-kyu
By Kang Hyun-kyung
In his book “Time to Invest in North Korea” published by Raon Books, Chung urges potential investors to take the risk of doing business with North Korea if they want to earn a lump sum. Otherwise, he says they won't be able to get the perks available for early entrants.
The author likens potential business opportunities in the North to something akin to the Gold Rush in 1848 which prompted a rush of miners to Sutter's Mill, California, from all around the world.
“Before the Gold Rush, San Francisco was merely a small fishing town. But it emerged as an affluent city after the Gold Rush. A construction boom followed ― roads, schools and towns were built there and California was finally annexed to the United States as its 31st state,” the book reads.
“Some 170 years after the Gold Rush, another revolutionary change is poised to take place on the Korean Peninsula. Located on the other side of the world, an approximate 12-hour flight from California, the Korean version of the Gold Rush looms large. North Korea is emerging as a country for investment as inter-Korean relations are improving and the United States-North Korea summit is set to take place.”
The book was officially published on March 4, but was written before than the second U.S.-North Korea summit.
A self-claimed North Korea expert, Chung says now is the time to invest in the North, claiming thorough planning far ahead of sanctions being lifted and bullish investment will pay off.
“Some are saying business opportunities in North Korea are overblown and some warn of the risks that could entail. Such reactions from concerned people remind me of what actually happened during the Gold Rush. Those who were bold enough to make the most of the Gold Rush, despite risks, became highly successful,” it reads. “Prospects for improvement of inter-Korean and U.S.-North Korea ties are mixed because some are optimistic whereas some are skeptical.”
According to the author, he came to build a network with those who are familiar with the North while providing legal referral services for North Korean defectors.
“Time to Invest in North Korea” is an investment guide book. The author says North Korea offers startup opportunities for jobless young South Koreans, noting basic infrastructure for starting business is in place there.
He says North Korea has a manufacturing sector, although it may not be as systematic as that of South Korea or other advanced economies.
According to the author, there are three groups of people consisting of New Money in the North_ the indigenous people who are called “don-ju” or cash owners, and Korean-Japanese and Korean-Chinese businessmen and women.
“Don-ju have accumulated considerable fortune through their business in the market. In the North, the market has been thriving since 1995 when the great famine took the lives of many people and as its size has grown due to the discontinuance of rations, those people made lots of money. Some have invested in the manufacturing sector to earn more, and some looked into trade with China,” the book reads.
Chung encourages aspiring investors to build a network with Korean-Chinese businesspeople who have done business with North Korea for decades, saying they have connections with high-ranking North Korean officials who are in a position to grant business permits.