Business in North Korea

EENI- School of International Business

Subject: Doing Business in North Korea. Pyongyang. Syllabus:

1. Introduction to the Democratic People's Republic of Korea (DPRK)
2. The North Korean Economy
3. Doing Business in Pyongyang
4. Foreign Trade of North Korea
5. The International Korean Business Centre
6. Case Study: Doing Business with the DPRK Government
7. Introduction to the Korean language
8. Access to the North Korean Market

The aims of the subject “Foreign Trade and Doing Business in the Democratic People's Republic of Korea” are the following:

1. To analyse the North Korean economy and foreign trade
2. To evaluate the business opportunities in the Democratic People's Republic of Korea
3. To explore North Korea's trade relations with the student's country

Sample of the subject - Doing Business in North Korea:

Description of the Subject (Doing Business in North Korea).

The Democratic People's Republic of Korea (Asia):

All business in North Korea is done directly with the Government (state-owned companies).

1. The Democratic People's Republic of Korea has a centralised Government under the absolute control of the communist Korean Workers' Party
2. Kim Il-Sung ruled North Korea from 1948 until his death on July 1994.
3. North Korea's population of 24 million people
4. North Korean Capital: Pyongyang
5. North Korea has the highest percentage of military per capita in the World.
6. Borders of North Korea: China and South Korea. Japan (by sea)
7. Language: Korean (석사 무 역 및 국제 마케팅)
8. Type of State: North Korea is a socialist state
9. Independence of Japan: 1945
10. Area: 120,540 square kilometres
11. Currency: North Korean Won

The North Korean Economy.

1. The industry of North Korea is operating at only a small fraction of capacity owing to lack of fuel, spare parts, and other inputs
2. Agriculture and fisheries: 21.6% of the gross domestic product
3. Index of economic freedom (Heritage) of North Korea score is 1, making the least free economy in the Index. North Korea ranks last out of forty-one countries in the Asia-Pacific region
4. The Communist Party controls every aspect of economic activity
5. North Korea has the highest percentage of military personnel per capita in the World.
6. North Korean GDP (nominal): 40,000 million dollars

The Foreign Trade of North Korea.

The North Korean Government controls all imports and exports, and formal trade is minimal. North Korea usually does not welcome foreign direct investment.

1. The total exports: 2.06 billion dollars
2. The main North Korean exports products: minerals, non-ferrous metals, garments, chemicals/plastics, machinery/electric and electronic products, animal products, wood products, vegetable products, and precious metals
3. Most of the products exported from Kaesong Industrial Complex are distributed in South Korea; a small quantity, 18% of the Kaesong Industrial Complex products is exported to international markets
4. International Trade between North and South Korea, legalised in 1988, had risen to near 1.68 billion dollars, much of it related to out-processing or assembly work undertaken by firms of South Korea in the Kaesong Industrial Complex.
5. Imports of the Democratic People's Republic of Korea: 3.58 billion dollars
6. Top North Korean import products: minerals, petroleum, machinery/electronics, vegetable products, textiles, chemicals, non-ferrous metals, plastics, vehicles, and animal products
7. The largest trade partners: People's Republic of China, South Korea, Singapore, India, and Russia
8. China is the biggest source of foreign direct investment (FDI)

The Democratic People's Republic of Korea is a member of:

1. Asian Development Bank (ADB)
2. Economic Social Commission for Asia and the Pacific
3. United Nations (UN)
4. Food and agriculture Organisation
5. Conference on Trade and Development
6. International Telecommunications Union
7. United Nations Development Programme
8. World Health Organisation
9. World Intellectual Property Organisation
10. World Meteorological Organisation
11. International Maritime Organisation
12. Nonaligned Movement

On July 2000, the Democratic People's Republic of Korea began participating in the Association of Southeast Asian Nations Regional Forum.

The Democratic People's Republic of Korea also expanded its bilateral diplomatic ties, establishing diplomatic relations with Italy, the Philippines, Australia, Canada, the United Kingdom, Germany, and many other European countries.

Korean language: