The Democratic People’s Republic of Korea (North Korea) is to become in the near future the most important trade centre in the Asian north-east. The Special Industrial Regions of Kaesong (founded in 2002) and Rajin-Sonbong (Rason, founded in the 80s and “reformed” in 2002) have been created especially for foreign investors.
To internationalize and localize in Asia by investing in the DPRK is convenient for the following reasons:
- Low production costs, due to the country’s particular centralized production and distribution chain and abundant presence of raw materials.
- High technical specialization of the workers that is reflected in the quality of the product and continuous technological innovations. North Korea has an exceptionally high literacy rate (99%, on of the highest in the world) and invests a lot in the research.
- Convenient taxation, first of all for high-tech companies: “The State particularly incourages investments in the sectors that introduce modern technologies, including high technology, the sectors producing internationally competitive goods, the sectors of the natural resources development and infrastructure building, as well as the scientific research and technological development sectors.” (Art. 7 of the LAW OF THE DEMOCRATIC PEOPLE’S REPUBLIC OF KOREA ON FOREIGN INVESTMENTS).
- Direct negotiations with the state-owned companies. The participation of our delegations allows high-level negotiations, as well as direct acquaintance with the country.
- Political stability and a comprehensive system without corruption.
- Full diplomatic relations: the DPR of Korea that is often accused of “isolation”, has however diplomatic ties with more than 160 countries. Italy was the first country of the G7 to establish normal diplomatic relations with the DPRK in 2000.
- New market: the DPRK is an almost virgin market, besides there’s a possibility to suppy goods on exclusive terms under an agreement with the State.
- Legal and transparent work: legal procedures, intellectual rights, patents and warranties for the inverstors are fully protected by specific norms. The DPRK took part in Madrid Agreement (1980) and signed Madrid Protocol in 1996.
The IKBC has brought to conclusion affairs with companies from Italy, Switzerland,the Netherlands, Thailand, Australia, Arab Emirates and other countries in the field of shipbuilding, clothing industry, software and programming, animation film production, mining industry, food industry, electronics, crafts etc. Since its starting the business mission, 80% of the companies introduced by the IKBC have launched a business affair with the Korean counterpart.