The only people likely to invest in NK are the Chinese. You can only invest there if you can make Kim be certain that you WILL invade and impale his head on a spike if he even thinks of nationalizing your investments.
Oh that is so not true. SKorea business people are lined up to deal in N.Korea. Russia certainly and also the other Asian countries. If this continues to be the real deal happening, and I think that it is, all sorts of business and industry will want to go there. It's just a matter of the people there adjusting to the changes at a pace they can handle.. and currently this week their Propaganda machinery is all about doing just that.
“The only people likely to invest in NK are the Chinese.”
You make a strong point about the political risk to investing in North Korea. It would be a tough sell to the board of directors of any big company. People are going to have to see new rules and good numbers in writing, and it will likely take years for the North Koreans to get new laws and rules in place.
I think that in addition to China though, South Korean companies will also significantly invest in the North, if the door opens. The article anticipates that most of the money for development would be raised on the Chinese and Korean stock markets, by their big companies. There is a lot of patriotic fervor, and family nostalgia to motivate them, and Korean entrepreneurs are dynamic risk takers. Also, they have some Japanese-like incest between the big industrial conglomerates and the Government Ministries, so the Government can coordinate some private investment to support policy. They also already have some experience doing this, with some little free trade zone industrial parks along the border. Apparently, the North Koreans have earned a reputation as super employees.
Except for big mining companies, the rest of the world might be more apt to sub-contract their exposure with local partners.
The Japanese will be an interesting case. I think that the rules would have to be favorable to lure them in, but they could do a lot if they chose to. I’m pretty sure that they will dutifully chip in some amount though, as part of the team, with Government guarantees.