Published on : Feb 02, 2015
Ambitious entrepreneurs who are looking for the world’s final and the ultimate business frontier don’t need to look farther ahead of North Korea – the country which apart from going against the pariah-state policy, is becoming more capitalistic in nature and exhibiting a greater inclination towards foreign investment. According to James Min, VP of DHL, Pyongyang there are several opportunities being observed at the medium and the small levels. However, the major investments are depend immensely on political situations and prevailing political trends.
Several huge international brands mainly hold back because of elaborate international sanctions and potential reputational risks. This leaves enough scope for China based companies which account for a major segment of the investors in North Korea. These companies carried out business worth US$6.39 billion in North Korea in the year 2014. Also, these businesses to firms in South Korea, had set a limit to a demarcated area at Kaesong. In spite of that only a handful of consultants and western entrepreneurs are entering North Korea’s economy that is worth US$48 billion.
As Tony Michell, a Seoul based entrepreneur, who had established a successful Swiss-North Korean joint-venture pharmaceutical firm that is engaged in selling aids to agencies, Pyongsu, venture capitalism is an area wherein three out of ten projects may end up being profitable. As a matter of fact, North Korea basically denotes adventure capitalism wherein perhaps one of ten might just about be a possibility. Prospective investors should ideally ensure that they should comply with the sanctions: UN negative list involves luxury goods, dual-use technologies, weapons, and certain types of financial services, and also forbids any kind of interactivity with blacklisted individuals and organizations. Countries like the U.S., South Korea, and Japan have a few more sanctions.