As North Korea quietly works to expand exports to China, representatives from a Chinese company selling North Korean Kaesong Koryo Ginseng Liquor and a North Korean trading company recently met in Dandong to discuss sales strategies.
According to a Daily NK source in China recently, three representatives from North Korea’s Pusong Trading Company and three from the Chinese vendor met in Dandong, Liaoning province, for about a week starting May 12 to review Kaesong Koryo Ginseng Liquor sales over the past six months and discuss future sales strategy and distribution plans.
Pusong Trading Company signed a sales agreement with a Guangdong-based Chinese company last November for Kaesong Koryo Ginseng Liquor.
Under the three-year contract running from Nov. 10, 2024, to Nov. 9, 2027, the Guangdong company sells Kaesong Koryo Ginseng Liquor wholesale in China on commission from Pusong Trading Company.
Kaesong Koryo Ginseng Liquor imported through official customs sells at North Korean goods shops in the Dandong area for 160 to 230 ($22 to $32) Chinese yuan per bottle.
The North Korean side has diversified the product by grade and upgraded packaging and design since last year based on Chinese requests. It has also strengthened marketing by producing and distributing advertisements emphasizing the liquor’s quality ingredients and health benefits, particularly focusing on its flavor and image as a healthy spirit.
Marketing strategy emphasizes historical ties
North Korea has pursued a sales strategy based on cultural connections, telling potential buyers that the country’s founder, Kim Il Sung, gave Chinese leader Mao Zedong a gift of Koryo ginseng — the liquor’s main ingredient — and producing videos comparing the spirit with moutai, one of China’s leading liquors.
The meeting also covered ways to improve sales strategy based on the past six months’ experience, market expansion and a potential deal to sell the liquor to a third country.
“The meeting was a midterm review so Pusong Trading Company can hit its foreign currency quota and write a loyalty report ahead of the ruling party’s 80th anniversary on Oct. 10,” the source said.
“I also understand the state ordered the company to boost overseas sales of Kaesong Koryo Ginseng Liquor through aggressive promotion.”
Smuggled Kaesong Koryo Ginseng Liquor is being sold in China at slightly lower prices than bottles imported through official customs.
