Doing business with North Korea
The Democratic People’s Republic of Korea (DPRK, also known as North Korea) finds itself at a new era of international economic cooperation, and it especially welcomes business with Europe. North Korea is offering various products and services to export markets, while the country is also in need for many foreign products.
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 fields, North Korea is an interesting option, since it is now actively opening its doors to foreign enterprises. It has also established a number of free trade zones and Economic Development Zones. There are several sectors, including renewable energy, shipbuilding, agro business, horticulture, logistics, animation and Information Technology, that can be considered for trade. North Korea is competing with other Asian countries by offering skilled labour at low monthly wages. In particular firms with production facilities in China, where the wages are rising fast, have been investigating alternative options in North Korea.
In case you are interested to explore North Korea, we can offer assistance (including advice related to the various sanctions when trading with North Korea). Earlier articles from us about trade and investment sectors (note: some of these sectors are now sanctioned):
• producing animation in North Korea (overview of the animation-sector in DPRK, July 2018)
• video: ICT outsourcing to North Korea (the second part of this video, made by Technical University Delft, deals with North Korea)
• Impression of our mission to North Korea in 2017
• Producing textile and garments in North Korea
• Software and ICT outsourcing
• Animation and cartoons (video examples of SEK Studio, Pyongyang)
• Cooperation in the flower sector
• Investment projects in the Wonsan-Kumgang International Tourist Zone
• Investing inside Korean EDZ's (Economic Development Zones)
• Floriculture investment project proposal
• Examples of North Korean products and investment proposals.
In the field of ICT, North Korea offers opportunities for collaboration in several areas, such as software development, production of computer games, mobile games, animation and cartoons, websites, data entry and digitization. Having access to a pool of highly technically skilled labor is a key rationale behind outsourcing to North Korea, and where the rates are low. This type of business cooperation is not subject to UN or EU sanctions. In order to provide information about these ICT-related opportunities, a unique study tour will take place in September 2018. ICT companies and animation studios in Pyongyang will be visited. The tour will also have a general and broad character, since it will also cover political, economic and touristic topics. See the example program
Study tour to North Korea (16 - 25 September 2018)
North Korea is now facing a growing number of international sanctions, and banned export items include key products as coal, seafood and textiles. North Korea can also import less, in particular oil. Before this latest round of sanctions, North Korea's economy grew at its fastest pace in 17 years in 2016. Actually, the North Korean economy has grown steadily in the Kim Jong-un era, due to several pragmatic policies.
The Times, September 2018: Something extraordinary is happening in North Korea and it has happened with great speed
The Wall Street Journal, July 2018: Companies See Glimmers of Opportunity in North Korea
The New York Times, June 2018: Who Wants to Do Business in North Korea?
BBC, December 2017: How does North Korea do business under sactions?
Planet Money, October 2017 (audio): North Korea's Capitalists
Reuters, October 2017: U.N. ban on North Korean textiles will disprupt industry and ordinary lives, experts say
China Brief, October 2016: The Stable Door and Chollima: Chinese Computers and North Korean IT
BBC News, June 2016: How Western businessmen make money from North Korea
Vice News, March 2016: Your clothes could actually being made in North Korea
NKNews, November 2015: North Korea angles for FDI, but doubt lingers
Institutional investor, July 2015: Open for business: North Korea seeks foreign money
JoongAng Daily, February 2015: Money the ultimate universal ideology
NKNews, July 2012: Business and Outsourcing in North Korea: interview with Paul Tjia
Radio Netherlands Worldwide, May 2009: Is doing business in North Korea ethical?
Press mission to North Korea (16 - 25 September 2018)
What will be the impact of the recent UN sanctions on North Korea’s economy? How do the Koreans view the international situation? What changes will become visible to the visitor to Pyongyang? In this critical period, we organize two press missions to the country, in order to provide information about these topics.
Trade fair participation
Are you interested in exploring export or import opportunities with North Korea? In that case, participation at the Pyongyang International Trade Fair can be useful. It is possible to have your own (or shared) booth at the PITF in May or September. Exhibiting is a great way to promote your products or services, and a surprising number of business contacts with Koreans can be made. The trade fair attracts forerign participants from China, New Zealand, Germany, Malaysia, Mongolia, Switzerland, Singapore, Australia, Indonesia, Vietnam, Italy, Thailand, Cuba, Poland and Taiwan. Participation is not expensive: a standard booth (3m x 3m), including the use of one interpreter, is available at this trade fair for around 1000 euro. We can assist you with the participation. See the video for an impression of this fair in 2017.
Academic cooperation with Kim Il Sung University
The Kim Il Sung University, founded on 1 October 1946, is the first university built in North Korea. On 29 and 30 September 2016, the international symposium "Science Development and Social Progress" took place in celebration of its 70th anniversary. Participants from different countries, including China, Russia, Germany, France, Spain, Poland, Australia, the UK and the Netherlands, took part in this event. It is the intention to hold more international academic seminars and also to launch joint research projects with other universities around the world. There are various options for academic collaboration, for example in the fields of Information Technology, bioengineering, materials development, renewable energy, river water purification. We can arrange visits to the Kim Il Sung University, to explore options for collaboration. The university is also planning to increase the number of foreign students studying the Korean language.
Korean language training in North Korea: the Pyongyang Summer School (1 - 22 July 2017)
Study the Korean language in Pyongyang next summer and make friends with your Korean teachers, language partners and tour guides while seeing the most important sights both in Pyongyang and elsewhere in the country. Both academically rigorous and led by the best language professors in North Korea, it will be the most meaningful and memorable summer learning experience of your life. The 2017 Pyongyang Summer Language Program is an intensive three week immersion experience that will help Korean language learners move to the next level in their language skills. The focus is on conversation with native language speakers. Upon acceptance, you will be part of the elite group of Europeans studying Korean language at the famous Kim Il Sung University!
Curious about trade options in North Korea? GPI Consultancy is an independent Dutch consulting company, and can provide you with the latest information. We also organize seminars and business missions on a regular basis, and can connect you with relevant Korean business partners. We also have contacts with the DPRK Chamber of Commerce in Pyongyang.