The trend is related to North Korea’s increasing willingness to accept joint ventures with foreigners, the officials said. They noted that the willingness was well manifested in Pyongyang’s decision to expand the Mt. Kumgang tourism district to cover such places as Tongchon County and Wonsan City.

A growing number of businesses in Jilin are expressing their intention to make investments into North Korea. According to the trade officials, nine Jilin businesses have so far invested $20 million into the North so far in such areas as tobacco, garments and trade.

Investment conditions in North Korea have improved considerably, the officials said, adding that low production costs are the main factor that draws Chinese investors to the North.

Most recently, a construction corporation and a pharmaceutical company in Jilin have separately ventured into North Korea. The trade officials said that the construction sector is counted as one of the most promising fields because of the growing demand for building materials in North Korea. Referring to the case of the pharmaceutical company, which specializes in making processed ginseng products, the officials said the company was attracted to the North because of the high ginseng production in North Korea, low production costs and a brisk demand in South Korea for North Korean ginseng.

(Zhongxin Jilin Newspaper, Nov. 9, 2004, in KOTRA)

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