Darkin talks business with North Korea

Vladivostok News ^ | October 8, 2003 | By Alyona Sokolova

[Lessismore]

Hermit North Korea is open for investment and Primorye is ready to cooperate with its neighbor if the issue of bank guarantees is settled, Primorye Governor Sergei Darkin told a press conference Monday returning from a four-day visit to North Korea that started October 1.

"North Korea is a reclusive country and wants to stay that way," Darkin shared his impressions of the country that he toured by train, seeing northern border territories where 22 million people live.

"North Korea builds its own economy that is military-oriented and does not want to depend on anyone," Darkin said. According to him the country is energy hungry and needs investment as most of the factories built by the former Soviet Union have become obsolete and are staying idle. "There are opportunities for businesses there and we should not waste time," Darkin said, adding that existing niches should be capitalized on. He also mentioned that Chinese and German businessmen are already working with North Korea.

Darkin reported that as far as domestic ports in the Far East work at full capacity Russia has plans to renew wide rail tracks to the port of Rajin and rent the port and its facilities to increase volumes of transported cargo. The plans also include building of an oil plant in Rajin. Moreover, Russia can sell electricity to North Korea since there is a 30 per cent surplus in the Russian Far East.

As far as Primorye is concerned, the region is interested in the cheap labor force that could be imported from North Korea. "We can engage North Korean workers in agriculture, forest and construction industries," Darkin said. For example Primorye desperately needs workers to further the development of agriculture. "Only 30 per cent of available fields in the region are cultivated at the moment due to lack of people," he commented. According to him 1,400 North Koreans currently work in Primorye but the number could be doubled by next year.

"We are preparing documents to sign agreements in defined areas including oil industry, forest and fish industries, construction, agriculture and tourism," Darkin continued. Working groups will be created by the end of this year, he added. But however promising the business opportunities and plans to realize them there still remains a hurdling issue of guarantees provided by North Korea.

"The issue of guarantees is very important for Russian businessmen willing to work with North Korea," Darkin said. "We think it is important to work out bank procedures guaranteeing successful investment to escape governmental guarantees or their promises to exchange goods," he added.