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Special Economic Zones in North Korea

An article by Dr. Bernhard Seliger has been published in the 80th issue of monthly journal of the German-Korean Chamber of Commerce and Industry. It gives insight into North Koreas economic strategies and the consequences the imposed sanctions have had on them.

Constructions in the special economic zone Rason

The article introduces the concept of special economic zones (SEZ) in North Korea. With most of the country’s infrastructure and machinery outdated, the SEZ were founded in regions that could potentially become centers for international trade. The first ever created SEZ in Rason is also the most successful one. Even though it could never live up to the idea of creating a “Singapore of the North”, there has been steady trade with China and Russia, although the sanctions against North Korea from 2017 have had a temporary negative impact.
The 19 Zones that have been added since the SEZ in Rason has been established in 1991 are not very successful as they have become abundant and hard to differentiate from the rest of the country, which keeps foreign investors hesitant.

Download the full article here or download the magazine for free on the official website of the German-Korean Chamber of Commerce and Industry, linked here.

 

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