(1888PressRelease)
April 20, 2007 - The DPRK government has taken a special interest in expanding and developing economic and technical cooperation and exchange with many countries all over the world on the principles of equality and mutual benefit.
The government is directing particular attention to providing foreign investors and foreign-invested enterprises with favorable climate for investment in several sectors of the economy such as industry, agriculture, construction, transportation, telecommunications, science and technology, tourism, distribution and finance.
Our country has already worked out the legal framework for foreign investment governed by the State.
The Law on Foreign Investment was promulgated by the decision No.17 of the Standing Committee of the DPRK Supreme People’s Assembly on October 5, 1992. It was amended and supplemented by the decrees No. 484 (Feb. 26, 1999) and No. 780 (Nov. 30, 2004) of the Presidium of the Supreme People’s Assembly and is now coming into force.
With the enforcement of this law, a number of foreign investors and entrepreneurs from different countries and regions have set up individual enterprises and equity or contractual joint venture enterprises within the territory of the DPRK, and are now carrying on their business operation on a stable condition, receiving preferential treatments including the reduction of and exemption from income and other taxes, favorable conditions for land use, priority in securing bank loans and remittance and use of profits earned from business activities.
The strong national economic power is another factor creating favorable investment climate for foreign investors and foreign-invested enterprises.
The Kim Chaek Iron and Steel Complex, Songjin Steel Complex, Chollima Steel Complex and Hwanghae Iron and Steel Complex, the mammoth iron and steel manufacturers with a long history of production, are in a position to mass-produce a variety of steel materials, hot- and cold-rolled steel billets, drawn pipes, etc.
The output of nonferrous metals in the updated Tanchon Smeltery, Munchon-Kumgang Smeltery, Munphyong Smeltery and other nonferrous metal makers has seen a steady growth in recent years.
The machine-building enterprises such as the Kusong Machine Tool Factory and Huichon Machine Tool Factory have also registered tremendous successes in turning out a wide variety of CNC machine tools and universal center lathes designed and manufactured with the sophisticated technology.
The recent technological updating project for the Ryongsong Machine Complex, Rakwon Machine Complex, Taean Heavy Machine Complex and other production centers of large-sized machines and ordered-equipment has made it possible to put the production of extra large-sized machines and equipment, complete sets of equipment, thermo- and hydro-electric generators, hydraulic excavators, oxygen plants and compressors on a sound footing.
A rapid progress of IT technology in our country has given an impetus to the further development of economic ties and exchange in this field with foreign countries around the world.
The IT development centers like the General Bureau of Software Industry of the DPRK are making their major efforts to develop a rich selection of programs to be used in wide areas including applications, systems, multi-media presentations and advertisements in close contact with the global IT-related enterprises.
The factories and enterprises in the sectors of light industry, agriculture and fishery have also enormous production potentials.
Our country has favorable geopolitical conditions for transit transportation of cargoes and the outlet of export commodities.
It is abundant in natural resources of marine products, forests and mineral ores including magnesite, graphite and ferrous and nonferrous metals, and has bright prospect of their development.
Besides, it has a perfect structure of roads, railways, ports, telecommunications and other infrastructure networks for providing every convenience to business operation of foreign investors.
It has also a huge army of technicians and skilled workers with an ample knowledge of business activities. Half of the labor population received compulsory secondary education and millions of technicians and specialists higher education.
The DPRK Committee for the Promotion of External Economic Cooperation, the Korea International Investment Development Corporation and other organizations concerned are exerting every possible effort to render the best services to foreign investors and foreign-invested enterprises so that they successfully carry on their business activities under the legal protection of the State.
The DPRK government will make every endeavor to promote economic cooperation and exchange with the countries around the world in line with the requirements of the developing situation of international economic relations.
