US Firms Looking to Invest in NK
By Michael Ha
Staff Reporter
Wendy Sherman, a former top U.S. adviser during the Bill Clinton administration, said American businesses are expressing a lot of interest in investing in North Korea.
But she emphasized that North Korean leader Kim Jong-il must first give up his nuclear ambitions completely and verifiably in order to develop economic and diplomatic ties with the United States.
In an exclusive interview with The Korea Times in Seoul Tuesday, Sherman said she was aware of a number of U.S. businesses expressing interest in investing in the North. ``There is already a lot of interest in commodities and minerals in North Korea. But obviously for U.S. investment to be robust in any way, Chairman Kim must institute the kind of reforms that would meet international standards and he has a very long way to go."
Sherman served as a top adviser and point person for North Korean issues during the Clinton presidency. She now works as principal of the Washington-based financial advisory firm the Albright Group and is visiting Seoul to explore potential investment opportunities in South Korean companies and the country's capital market.
``To fully normalize relations with North Korea, whether that happens depends on North Korea and its willingness to make a transparent and complete declaration, its willingness to not only stop but also dismantle its nuclear weapons program and to actually give up its nuclear weapons. I think that this is a very long path," Sherman said.
Sherman also agrees with billionaire investor Warren Buffett's assessment that there are positive investment opportunities in South Korea. Buffett is the world's richest person according to latest 2008 figures compiled by U.S. financial publication Forbes.
He said earlier this week that his companies might invest more in South Korea, following a successful investment in the steelmaker POSCO.
``Buffet has said that investment in South Korea is a positive thing and I agree with that assessment. But I just saw in The Korea Times a story about how foreign investors are turning away from Korea. I am a principal of Albright Capital Management and we are here looking for opportunities for investment," she said.
She said, ``I know that President Lee Myung-bak has said he wants to make sure that South Korea is open to foreign direct investment. We hope and trust that the Lee administration will continue moving forward on reforms so that foreign investors indeed have positive opportunities in South Korea.
``We believe President Lee wants to make sure that South Korea continues to be a very successful market economy. We want Korea's growth to continue and it's very important to find avenues for investment here and be part of that growth story," she said.
As for North Korea's nuclear standoff, Sherman said it would be in Chairman Kim's best interest to come clean now with his clandestine nuclear activity.
She said it would be a mistake for Kim to think that the next U.S. President ― who is likely to come from the progressive Democratic Party ― would be soft in dealing with North Korea.
``I have encouraged, largely through the press, Chairman Kim to move as quickly as he possibly can because a new American administration will need to be a very tough negotiator with North Korea. North Korea's prospects will not get better. In fact, they will get more difficult so North Korea should make as much progress as it possibly can now," Sherman said.
The remaining two Democratic presidential nominees, Senators Hillary Clinton and Barack Obama, believe in talking with Pyongyang but they are tough negotiators, she said. ``Both Clinton and Obama, one of whom I believe will be the next President of the United States, believe in negotiations with the North, but in tough negotiations, verifiable negotiations: negotiations that are detailed and careful and produce results."
Sherman said President George W. Bush ``wasted nearly six years'' because he was unwilling to negotiate with North Korea, while the Stalinist state continued to produce plutonium.
She said, ``In the last year and a half, President Bush changed direction wisely. Some progress has been made but it is important to continue that progress.
``It is important to continue these six-party talks but to make sure that there is sufficient verification and detail in the declaration by North Korea to assure the international community that North Korea is very serious about ending its nuclear weapons program," Sherman said.