KOREAN FRIENDSHIP ASSOCIATION INTERNATIONAL KOREAN BUSINESS CENTER TRADE IN THE DPR OF KOREA NUMBER: 1 NOVEMBER 2014 (Juche 103) PRESENTATION: Dear Sir/Madam, The DPR of Korea (North Korea) is a country plenty of business offers and probably one of the last few places that have unique available opportunities in the highly globalized and competitive international economy. It has been the consistent position of the Republic to expand its international trade and welcome foreign companies and businessmen to explore opportunities in the fields of Import, Export and Joint Ventures. We hope this bulletin will serve as a ‘window’ to the DPRK and help to facilitate the international trade. Thank you for your kind attention. Alejandro Cao de Benos de Les y Perez President of the KFA / IKBC Special Delegate for the Committee for Cultural Relations (Government of the DPR of Korea) INTRODUCTION: Advantage of Investment in the DPRK 1. Highly Secured Political Situation The DPRK has the most advantageous popular masses‐centered socialist system whose guiding principle is the immortal Juche idea authored by the great leader Comrade Kim Il Sung and further implemented by Generalissimo Kim Jong Il where the popular masses are the masters of society and everything in society serves them. As a result, all the people today are united single‐heartedly behind the Respected Marshal Kim Jong Un, thus ensuring an absolutely secure and stable political situation. The Worker’s Party of Korea has been leading the Republic since its foundation in 1948. The country has not a single trace of terrorism or social unrest. Housing, education and healthcare are provided free of charge for all citizens. 2. Comprehensively Developed Economic Foundation And Potentials The DPRK has diversified economic foundation and potentials with fairly developed heavy and light industry, including shipbuilding, heavy machinery, precision machinery, electronics, IT programming, food processing, textile and garment, as well as agriculture, fishery and forestry. 3. Infrastructure For Business Activities The DPRK has all infrastructures such as electricity and water supply, road, railway and other types of transport at home and abroad, communication and ports accessible to any markets. 4. Access To Huge Consumer Markets As Korea is surrounded by such big countries as China, Russia and Japan, it has an easy access to the huge markets whose consumers amount to 600 million within the radius of 1,000 km, or to 1.5 billion within the radius of 2,000 km. 5. Productive Labor Force The DPRK has no illiteracy with a universal 12‐year compulsory education system in force, and thus it has productive and industrious labor force with full education higher than middle school and prepared to be adapted to any kind of job. The workers can be trained in any foreign country according to the requirements of the investor. 6. Low Labor Cost The DPRK applies comparatively lower labor cost. It is one forteenth of the labour cost in Europe and one eighth than China. 7. Competent Management Officials and Technicians The DPRK has competent management officials and technicians ready to cooperate with foreign investors in all fields of the economy. 8. Low Tax Rate and Few Kinds Of Tax In DPRK you will find very low tax rate including income tax applied to foreign‐invested enterprises and less number of tax kinds, which means less tax burden to business. 9. Financial Privilege and other Advantages The DPRK not only offers financial privilege to foreign invested business but also provides all advantages for business activities such as directly importing raw and other materials for production and exporting its products without any permission. Private earnings have no tax. There is a non‐restrictive policy regarding inflow/outflow of foreign currency. It is possible to transfer foreign currency inside and outside the DPRK via third‐countries without any limitation. Withdraw of earnings in foreign currency is not subjected to tax. It is possible to open bank accounts in Euro, USD or Yuen RMB with just a foreign passport and one recommendation. 10. Rich Natural Resources The DPRK is rich in natural resources including useful underground minerals of over 200 kinds, as well as marine and forest resources. For example: coal, iron, tin, zinc, copper, silver, gold and other non‐ferrous metals as well as limestone, magnesite, graphite, wolfram and tungsten. Korean flora is characterized by diversity of its composition and coverage. As regards the composition, higher plants number over 4,200 species in 235 families, of which there are 1,048 species of varieties and 500 Korean indigenous species. There are 450 species of industrial plants, 200 species of medicinal plants, 80 species of dyestuffs, 60 species of aromatic plants, 200 edible herbs and 370 species of fodder plants. Korea is surrounded by the sea on three sides, and 80 per cent of its territory is mountainous. And Korea is diverse in its climate and plant coverage, and the northern region is connected with the continent. As a result, it is rich in animal species, of which there are many useful animals. In Korea there are vertebrates such as 97 species of beasts, 394 species of birds, 27 species of reptiles, 14 species of amphibians and 850 species of fishes as well as invertebrates such as squid, shellfish, crab, shrimp, insects, sea cucumber and sea urchin. 11. Top Secrecy The DPRK is a fully sovereign country, outside the pressure and influence of international organizations, mass media, traditional lobbies, corporations or foreign interests. This allows for the research and development of projects that for some reason are not allowed in other countries (Like a low cost drug research for Cancer’s cure, or special clean‐energy prototypes). Added advantage is that the competency can never copy or extract information of any project being developed inside the country. 12. Zero bribes There are no bribes ever to be paid. We have a zero tolerance with criminality. Your deals are direct with a DPRK state company that guarantees your investment or purchase. The company can secure its commitment with property, equipment and other assets. AVAILABLE OPPORTUNITIES Note: Some offers maybe limited to a certain period of time. New bulletins will reflect if previous offers are still available or not. EXPORT or JOINT VENTURE Fish products Following is the list of seafood species. There is the possibility of open canneries and processing facilities in the country or just importing the following raw produce: 조선서해 ᇞ 물고기자원 1. 멸치 Engraulis japonicus 2. 까나리 Ammodytes personatus 3. 전어 Clupanodon punctatus 4. 숭어 Mugil So‐iuy Basilewsky 5. 은숭어 Mugil cephalus 6. 망둥어 Acanthogobius flavimanus 7. 고등어 Scomber japonicas 8. 바다뱀장어 Muraenesox cinereus 9. 참가재미 Limanda herzensteini 10. 돌가재미 Kareius bicoloratus 11. 검둥가재미 Limanda yokohamae 12. 어기가재미 Cleithenes herzensteini 13. 넙치(광어) Paralichthys olivaceus ᇞ 연체류자원 1. 직검발(밥문어) Octopus ochellatus 2. 서해문어(긴팔문어) Octopus variabilis 3. 대합 Meretrix lusoria 4. 동조개 Mactra veneriformis 5. 피조개(큰피조개) Anadara(Arca) inflata 6. 밥조개 Pecten(Patinopecten) yessoensis 7. 보라섭조개 Mytilus edulis 8. 섭조개(참섭조개) Mytilus crassitesta(coruscus) 9. 큰섭조개 Mytilus grayanus 10. 참굴 Ostrea(Crassostea) gigas 11. 민어굴 Ostrea(C.) rivularis 12. 키조개 Atrina pectinata japonica 13. 맛 Sinonovacula constricta 14. 소라(골방조개) Repana thomasiana ᇞ 갑각류자원 1. 꽃게 Portunus trimberculatus 2. 방게 Charybdis sexdentata 3. 갈게 Helice tridens 4. 참게 Eriocheir sinensis 5. 큰새우(왕새우) Penaeus orientalis 6. 미래새우(참새우) Leptochela gracilis stimpson ᇞ 극피동물 및 강장동물 자원 1. 해삼 Stichopus japonicus 2. 성게 Pseudocentrotus depressus 3. 중성게 Strongylocentrotus pnlcherrinus 4. 푸른가시성게 Strongylocentrotus. intermedius 조선동해 ᇞ 물고기자원 1. (아시아산)뱀장어 Anguilla japonica 2. 연어 Oncorhynchus keta 3. 송어 Oncorhynchus masu 4. 멸치 Engraulis japonicus 5. 정어리 Sardinops melanosticta 6. 공치 Colorabis saira 7. 고등어 Scomber japonicas 8. 다랑어 Thunnus thynnus 9. 방어 Seriola quingueradiata 10. 까나리 Ammodytes personatus 11. 명태 Theragra chalcogramma 12. 청어 Clupea pallasi 13. 도루메기 Arctoscopus japonicus 14. 대구 Gadus macrocephalus Tilesius 15. 이면수 Pleurogrammus azonus Jordan et Metz 16. 어기가재미 Cleithenes herzensteini 17. 참가재미 Limanda herzensteini 18. 검둥가재미 Limanda yokohamae 19. 넙치 Paralichthys olivaceus ᇞ 연체류자원 1. 문어 Octopus dofleini 2. 낙지 Todarodes pacificus 3. 소라 Repana thomasiana 4. 섭조개 Mytilus crassitesta(coruscus) 5. 참굴 Ostrea(Crassostea) gigas 6. 개량조개 Mactra chinensis 7. 밥조개 Pecten(Patinopecten) yessoensis 8. 바스레기 Ruditapes(Venerupis) philippinarum 9. 피조개 Anadara(Arca) inflata 10. 돌조개 Lamprotula leleci 11. 전복 Haliotis giantea 12. 대합 Meretrix lusoria ᇞ 갑각류자원 1. 털게 2. 참게 Eriocheir japonicus 3. 왕새우 Penaeus orientalis ᇞ 극피동물 및 강장동물 자원 1. 해삼 Stichopus japonicus 2. 성게 Pseudocentrotus depressus 3. 중성게(큰중성게) Strongylocentrotus drobachiensis 4. 말성게 Heliocidaris crassispina IMPORT DPRK state companies are looking to import Russian‐made Goods, especially household products, Please send your price list, delivery terms and payment conditions to us. IMPORT DPRK state companies are interested to import: Wheat Flour, Rice, Sugar, Soya Oil, Corn Oil. Please send your price list, delivery terms and payment conditions to us. INVESTMENT‐LOAN A state company building high‐rise apartments, shopping centers, etc. require short term loans: From 500,000 USD to 4 million USD They will pay back principal and 20% interest in 2 years time. Loan is guaranteed by existing properties in the capital, Pyongyang. JOINT VENTURE We are looking for a partner to open a fodder factory near the port of Nampo, in a special industrial area with good communication, light and water supply. We have a high internal demand and we are currently importing from overseas. The production can be sold inside and outside the country. EXPORT‐JOINT VENTURE Our company produces Sponge Titanium Selling at 7000 USD/ton EXPORT Our company has ready 200 Kgs of Berilium (BeOH2O) Resistance to heat and wearing, use for airplane, defense, satellite, nuclear plants. JOINT VENTURE Our company is looking for a foreign partner to build a 5 stars hotel near the newly built Pyongyang Airport in Sunan district.