Last Wednesday, North
Korea’s state media reported that the Supreme People’s Assembly had declared
six more economic development zones in the country. The new zones are planned for Pyongyang and Nampo, as well as the
provinces of South Hwanghae, North and South Pyongan. At the same time, Chosun Central News Agency (KCNA) reported that an existing special zone
in Sinuiju is to be renamed “Sinuiju International Economic Zone.”
These moves comes not long after North Korea declared thirteen new development zones in November last year, including Amrok [Yalu] River Economic Development Zone, Sinpyeong
Tourism Development Zone, Manpo Economic Development Zone, and Wiwon Industrial
Development Zone. With the latest additions, this brings the total number of new
economic development zones in the country up to a staggering nineteen.
According to the most recent directive, parts of Wisong-dong, Kwahak 1-dong, Kwahak 2-dong, Paesan-dong,
and Ulmil-dong in Pyongyang are to become a “cutting-edge development zone.” The State
Academy of Sciences is located in this area. There are also plans to set up an “integration center” for the development of advanced technologies in the zone.
Elsewhere, Kangryong
International Green Model Zone is to come into being in Kangnyong County, South
Hwanghae Province; Nampo is to see an “export processing zone;” and an existing
chemicals industry area of Chongnam in South Pyongan Province is to become an industrial
zone. Likewise, an existing rich farming area of North Pyongan Province is to become an
agricultural development zone.
By creating thirteen economic development zones last year and adding six more this year, North Korea offers ample indication of its wish to secure foreign investment. However, it is unclear
whether state investment will flow in first to help develop essential infrastructure for development in the declared zones. Indeed, it is not certain whether there
is even sufficient understanding of how special economic zones are supposed to work.
“There hasn’t been any
major progress on the thirteen economic development zones announced last time,”
Cho Bong Hyun of IBK Economic Research Institute pointed out to Daily NK. “It looks like they’re just saying that they’re trying to develop their economy; a show for the international community.”
“The designation of
nineteen different kinds of economic development zone can be called an
attempt to incite competition and attract foreign capital in absolutely every and any way possible,”
he added.
The question is whether this can be successful. “Hereafter they will
make many attempts to obtain foreign investment, but success depends entirely upon
whether they show a progressive approach to resolving the legal, systematic, construction and infrastructure problems
that concern the international community,” Cho explained. “If North
Korea has no intention of moving in that direction then its efforts to
construct development zones will result in nothing.”
