Less than two weeks after being punished with new UN sanctions, North Korea has sent its ceremonial head of state and two top economic officials to Singapore and Indonesia on a trip that appears aimed at drumming up outside investment.
North Korea Parliament Presidium President Kim Yong-nam arrived in Singapore on Friday for his first reported trip overseas since former North Korean leader Kim Jong-il’s death in December last year.
He traveled yesterday to Indonesia with two senior economic officials, according to North Korean state media.
Photo: EPA
Kim Yong-nam often represents Pyongyang abroad.
The weeklong visit comes on the heels of new UN sanctions imposed on North Korea for launching a long-range rocket last month in defiance of Security Council resolutions banning it from nuclear or ballistic missile activity. Pyongyang insists the launch was an attempt to launch a satellite into space.
Washington suspended an agreement to provide North Korea with food aid and the North could face more punishment if it follows the launch with an atomic test as it did in 2006 and 2009.
Even as it has risked punishment by developing missiles, Pyongyang has also focused, since 2009, on improving its economy by developing light industry, attracting foreign investment and expanding trade.
With ties remaining tense with Seoul, North Korea is looking elsewhere to build economic partnerships.
Singaporean entrepreneurs are already supplying the well-to-do in Pyongyang with everything from Heineken beer to Hello Kitty, and have introduced some locals to hamburgers, fried chicken and Belgian waffles.
North Korea is looking to diversify its trade, import natural resources and export consumer goods with Southeast Asia’s help.
Singapore offers an attractive model for attracting direct foreign investment, while resource-rich Indonesia could give pointers on how to make money from minerals, said Cho Bong-hyun, a research fellow at the IBK Economic Research Institute in Seoul.
Kim Yong-nam visited a food factory and an electronics manufacturer in Singapore on Saturday, the Korean Central News Agency (KCNA) said.
The North Koreans may also use the trip to Singapore to learn how to develop a successful growth model that does not threaten the political power structure, said Andray Abrahamian, executive director of Choson Exchange, a -Singapore-based nonprofit group that has provided business and legal training for about 200 young North Korean government officials and students.
“Singapore’s development trajectory has been attractive to a number of countries who are interested in maintaining political stability to manage rapid economic growth,” he said.
Trade and investment between North Korea and Southeast Asia have waxed and waned over the past 12 years.
From 2000 to 2006, trade with 11 Southeast Asian countries — including Indonesia, Singapore and Thailand — accounted for between 10 percent and 12 percent of North Korea’s foreign trade, but after Singapore and others pledged to enforce UN sanctions, trade with the region dropped to less than 2 percent in 2010, according to the Korea Institute for International Economic Policy in Seoul.
North Korea has sought to reverse that trend. In 2010, Singapore was North Korea’s sixth-largest trade partner, according to the Korea Trade-Investment Promotion Agency in Seoul.
In recent years, the North has developed two special economic zones, in Rason in the northeast and Hwanggumphyong in the northwest, and is looking to Singapore for guidance, analysts said.
“Since the 1990s, North Korea has consistently said that it sees Singapore as a model for its special economic zones,” said Lim Soo-ho, a researcher at Samsung Economic Research Institute in Seoul.
Accompanying Kim Yong-nam is Ri Kwang-gun, who heads the North Korean Joint Venture and Investment Commission in charge of attracting foreign investment.
Pyongyang could also try to sell itself to manufacturers looking for cheap labor as well as boost exports of its consumer products, analysts said.
The other economic official in the delegation is North Korean Minister of Light Industry An Jong-su, KCNA said.
Meanwhile, South Korea is set to negotiate with China on a free trade agreement that could lift tariffs on products made in North Korea’s special economic zones, making investment in North Korea more favorable.
“North Korea has the cheapest labor in the world, less than half of China’s [rates],” Lim said. “Foreign investors can manufacture goods in North Korea and export them to China.”
Indonesia could provide guidance on how North Korea might exploit mineral resources that the North Korea Resources Institute in Seoul estimates are worth more than US$10 trillion, analysts said.
Indonesia has had strong ties with North Korea since 1964. In 1965, when late North Korean founder Kim Il-sung paid Indonesia a visit, then-Indonesia president Sukarno presented him with an orchid dubbed the Kimilsungia.
On Tuesday, North Korean and Indonesian officials signed an agreement to share news stories, photographs, video and TV footage, and eventually swap journalists, the Indonesian Ministry of Foreign Affairs said in a statement.
‘IN A DIFFERENT PLACE’: The envoy first visited Shanghai, where he attended a Chinese basketball playoff match, and is to meet top officials in Beijing tomorrow US Secretary of State Antony Blinken yesterday arrived in China on his second visit in a year as the US ramps up pressure on its rival over its support for Russia while also seeking to manage tensions with Beijing. The US diplomat tomorrow is to meet China’s top brass in Beijing, where he is also expected to plead for restraint as Taiwan inaugurates president-elect William Lai (賴清德), and to raise US concerns on Chinese trade practices. However, Blinken is also seeking to stabilize ties, with tensions between the world’s two largest economies easing since his previous visit in June last year. At the
Nearly half of China’s major cities are suffering “moderate to severe” levels of subsidence, putting millions of people at risk of flooding, especially as sea levels rise, according to a study of nationwide satellite data released yesterday. The authors of the paper, published by the journal Science, found that 45 percent of China’s urban land was sinking faster than 3mm per year, with 16 percent at more than 10mm per year, driven not only by declining water tables, but also the sheer weight of the built environment. With China’s urban population already in excess of 900 million people, “even a small portion
UNSETTLING IMAGES: The scene took place in front of TV crews covering the Trump trial, with a CNN anchor calling it an ‘emotional and unbelievably disturbing moment’ A man who doused himself in an accelerant and set himself on fire outside the courthouse where former US president Donald Trump is on trial has died, police said yesterday. The New York City Police Department (NYPD) said the man was declared dead by staff at an area hospital. The man was in Collect Pond Park at about 1:30pm on Friday when he took out pamphlets espousing conspiracy theories, tossed them around, then doused himself in an accelerant and set himself on fire, officials and witnesses said. A large number of police officers were nearby when it happened. Some officers and bystanders rushed
Beijing is continuing to commit genocide and crimes against humanity against Uyghurs and other Muslim minorities in its western Xinjiang province, U.S. Secretary of State Antony Blinken said in a report published on Monday, ahead of his planned visit to China this week. The State Department’s annual human rights report, which documents abuses recorded all over the world during the previous calendar year, repeated language from previous years on the treatment of Muslims in Xinjiang, but the publication raises the issue ahead of delicate talks, including on the war in Ukraine and global trade, between the top U.S. diplomat and Chinese