North Korea Refuses the Visit and Stay of Its Business Partners

It is reported that inter-Korean business deals propelled by domestic companies are not successful.

The Ministry of Commerce, Industry and Energy submitted a report titled, `the present situation of inter-Korean business deals by domestic companies` to the committee of Commerce, Industry and Energy. According to the report, among 10 business deals that was approved by current government authority from March of 1998, almost all business deals are having great difficulties except several business deals whose earning rate cannot be estimated yet.

Baksan Industry and Doore Farming Association could not even start their investment because of North Korea`s ban on visit to Najin area in fall of 1998. Baksan Industry had a plan to grow mushrooms in the North and export or bring the products into the South.

Doore Farming Association also had a plan to grow agricultural products in Najin area.

The marine products business planned by Mihung Food is also suspended because of the ban to visit North Korea after 64 thousands dollars of stocks investment including ship and other marine equipment. Taeyoung Fisheries and LG who invested 13 thousands dollars for the farming of giant clam also had to stop their business.

Tachang Corp. is now hesitating to continue its business of Kumgang Mt. Sammul of North Korea has raised the price from 3.5 dollars per ton to 100 dollars. Tachang Corp. invested 5.52 million and 7 thousand dollars so far.

Besides this, Aza Communication did not embark its business of TV advertisement and printing due to its domestic difficulties.

Daewoo, who had invested 5.12 million dollars, also stopped the dressmaking business in Nampo factory districts because the North did not allow technicians and managers to stay in North Korea.

The Ministry of Commerce, Industry and Energy said that it is hard to know the promise of following companies yet since they are in their first step,

@ Green Cross invested 1.91 million and 2 thousand dollars for thrombus cure business @ International Corn Foundation invested 4.10 million dollars for a new species @ Korea Land invested 200 thousands dollars for realty consulting and development.

Cho Myung- Chul, a former professor of the university of Kim Il-Sung and researcher of foreign economy and policy research center said, ``North Korea has a very different habitual practice and we cannot put any restraint on North Korea even if it breaks contracts. So it can be dangerous to invest in North Korea, following warm political atmosphere such as summit talk. We should invest based on the practical ground.``

Kim Sang-Chul sckim007@donga.com