Samsung and other South Korean corporations eying expansion into North Korea?

The billionaire leader of Samsung’s sprawling business empire will visit North Korea this week along with the heads of nearly a dozen top South Korean corporations, accompanying South Korean President Moon Jae-in.

President Moon will meet with North Korean leader Kim Jong Un during the visit — the first trip to Pyongyang by a sitting South Korean president since 2007. Last month, Moon laid out ambitious plans that would dramatically transform and connect the two economies, giving South Korea a land link to the rest of the Asian continent, potentially opening up lucrative trade and infrastructure links. Such plans could eventually benefit Samsung and South Korea’s other huge family-run conglomerates, which are known as chaebol.

“If South Korea can take the initiative to bring chaebol leaders to North Korea … maybe it would be a good start for South Korean [money] to move into Pyongyang,” said Steve Chung, a Korea expert at the Chinese University of Hong Kong.

The business leaders will be meeting with North Korean Vice Premier Ri Ryong Nam, a spokesman for the South Korean president’s office said Monday.

North Korea’s cloistered economy of 25 million people has attractive elements for foreign investors, according to analysts. They include a cheap workforce, a good geographic location and unexploited natural resources. But doing business in North Korea comes with a lot of risks, most notably heavy US and international sanctions on Pyongyang that companies would have to navigate — unless the restrictions are lifted. So it’s doubtful Samsung will be setting up shop in North Korea any time soon.

[CNN]

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.