Did Kim Jong-un’s ‘credit restoration’ order work…China, ramps up investment
Kim Jong-un is seeking to regain trust with Chinese investors. [Image: KCNA]
Chinese capital appears to have recovered its appetite for investment in North Korea. After a loss of trust in recent years due to repeated breaches of trade agreements, Pyongyang is now taking active measures to rebuild credibility at the direction of Kim Jong-un.
As a result, Chinese companies and investors appear to be engaging in large-scale investments in the country again.
According to sources inside the isolated country, reached by NK Times on April 23rd, the regime has recently permitted Chinese investment in land in major cities, notably Pyongyang, Pyongsong, Sariwon, Haeju, Pyongsong, Kaechon, and Hamhung. It is providing active support for the establishment of Chinese-owned factories and retail stores in these areas.
Similarly, North Korea is significantly ramping up efforts to attract Chinese tourists and is organizing guided visits to key industrial facilities and tourist destinations, in a full-scale push to secure foreign investment.
Trade offices in the main cities reportedly started selling land to Chinese investors and allowing Chinese businesses and individuals to build factories and shops in March. General tourism entry, however, is still only partially allowed, the sources said.
The changes follow a directive by Kim in January to “restore international credit.” As an indication of Kim’s intent, the directive said that “any act that damages foreign credit (would be regarded) as an anti-state crime and punished severely.”
As statements from the supreme leader are regarded as law and executed immediately, trade officials at once notified Chinese companies and investors of the change. The sources report that the previously tarnished credibility, damaged by failure to honor past agreements, has seen a rapid recovery and lead to a surge in investment.
“In February, we learned that Chairman Kim had issued a directive stating that any act lowering the country’s international credit would be treated as an anti-state offense and punished severely,” said a Chinese businessman involved in North Korea-related operations in a phone interview. “We understand that the directive was targeted at trade agencies.”
“This kind of strong commitment by the leadership to build trust has laid the foundation for our companies and investors to actively expand investment,” he said.
“North Korean trade officials are proposing cooperation in a wide range of goods, from home appliances to manufactured products. However, there are still many investors unable to take advantage of these opportunities due to a lack of capital,” he said.
Han was born in 1989 in Taehongdan county, Ryanggang province, North Korea. She graduated from Hyesan Teacher's College in 2012, after which she worked as an elementary school teacher. She defected to South Korea in 2016 and works as a reporter at NK Times in Seoul.
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