North. Korea. new era. there. is currently taking place. Korea GPI Consultancy, Rotterdam
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- Lionel Parks
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1 Impression of a press tour to North Korea (business related), 14 November 2014 The Democratic People s Republic of Koreaa (DPRK, also known ass North Korea) finds itself at a new era of international economic cooperation, and it especially welcomes business with Europe. The DPRK is offering various products and services to export markets, while the country is also in need for many foreign products and investments. The new leadership is alsoo introducing some Chinese-style reforms, both in agricultural management and in industry. In the current financial and economic situation, European companies face many challenges. They must cut costs, develop new products and find new markets. In these t fields, North Korea is an interesting option. It established several free trade zones to attract foreign investors and there are various sectors, including renewable energy, garments, shipbuilding, agroo business, fishing, f horticulture, logistics, mining, stone processing, restaurants and Informationn Technology, that can be considered for trade and investment. It is competing with w other Asian countries by offering skilled labour at very low monthly wages. In particular firms with production facilities in China, where the wages are rising fast, are currently investigating alternative options in North Korea. Most of the North Korean trade is currently taking place with China, which grew in 2013 by over 10% from that recordedd in A growing number of European firms are exploring the country as well. For companies interested in working withh this country, one of the immediate challenges is finding a suitable businesss partner, since collecting information is not easy. Local enterprises mostly do not have a presence on the Internet, and access to them iss difficult. This is also the case for foreign journalists, wishing to report about business-related topics in North Korea. For this reason,
2 we recently organized a press mission to Pyongyang, in order to investigate the business climate in North Korea in detail. A number of European journalists took part, from Dutch, Belgian, German, French and UK press agencies (including TV). Seminar Doing business with North Korea (27 October) At the beginning of the tour, in Beijing, we organized the seminar: "Doing business with North Korea". This event was also open for external participants. Three European speakers addressed various aspectss of doing business with North Korea: Paul Tjia, director of GPI Consultancy, gave a general introduction on trade & investment opportunities. Simon Cockerell, Koryo Tours, presented an overview of the latest developmentss in tourism. Roger Barrett, director of Korea Business Consultants, discussed his experiences with working inside North Korea, including on projects in the minerals sector. Examples of visitss in Pyongyang (28 October 1 November) ) A textilee company was visited. Companies in Europe, China, and South Korea are producing various kinds of clothing in North Korea andd some of the local factories have become very large and experienced exporters. With a highly skilled labor force and with the lowest wages in Asia, a growing number of foreign garment firms are currently operating in-country. Visit to an electric cable factory, and to a tiles factory. Due to the expansion e of f building activities in North Korea, these factories need to increase their output. As part of new economic measures, companies have now more freedom. They are also seeking foreign investments. 2
3 Example of a European joint venture with a North Korean company: a coffee shop Presentations were given by members of the Academy of Sciences about the recent changes in the economic policy (e.g. directors of state factories are now given much more freedom than in the past). Also the plans with Special Economic Zones and the lawss related to international joint ventures were discussed. 3
4 During our visit, we could see several examples of building activities in Pyongyang. More cars and taxis are visible The international airport,, being renovated New apartment buildings A visit to the recently opened Mirin Horse Riding Club. Interviews could be held. 4
5 BUSINESS PRESS MISSION Various informal activities took place, such as a visit to the dolphinarium and to an art studio Dinner at a new restaurant. We also had a meeting with Europeans living in Pyongyang Our upcoming mission to North Korea: in May This press mission was organized by GPI Consultancy. Our upcoming business-related mission to North Korea is planned for May 2015, when the annual Pyongyang International Trade Fair takes place. For detailed information about our missions, please contact Mr. Paul Tjia, founder and director of GPI Consultancy. The following business sectors in North Korea are described by us in more detail: Garments: Software and ICT: Paul Tjia (together with American professor Erran Carmel) is also the author of the handbook: Offshoring Information Technology - Sourcing and Outsourcing to a Global Workforce (Cambridge University Press), available at Amazon: For further information GPI Consultancy, P.O. Box 26151, 3002 ED, the Netherlands Tel.: info@gpic.nl, web: 5
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