{"id":44806,"date":"2020-05-15T13:32:09","date_gmt":"2020-05-15T04:32:09","guid":{"rendered":"https:\/\/www.dailynk.com\/english\/?p=44806"},"modified":"2026-04-05T15:37:42","modified_gmt":"2026-04-05T06:37:42","slug":"north-korea-takes-further-steps-sell-public-bonds-donju","status":"publish","type":"post","link":"https:\/\/www.dailynk.com\/english\/north-korea-takes-further-steps-sell-public-bonds-donju\/","title":{"rendered":"N. Korea takes further steps to sell public bonds to the donju"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">North Korea recently upgraded the status of a North Korean-Chinese joint venture company as part of efforts to encourage the sale of public bonds to the country\u2019s wealthy entrepreneurial class, the <\/span><i><span style=\"font-weight: 400;\">donju<\/span><\/i><span style=\"font-weight: 400;\">, Daily NK has learned.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A source in North Korea told Daily NK on May 13 that the Pyongjin Joint Venture Company (\ud3c9\uc9c4\ud569\uc601\ubb34\uc5ed\ud68c\uc0ac, also formerly known as the Pyongjin Bicycle Joint Venture Company) had recently been \u201cpromoted\u201d in status to become the Pyongjin Trade Guidance Bureau (\ud3c9\uc9c4\ubb34\uc5ed\uc9c0\ub3c4\uad6d, referred to as &#8220;Pyongjin&#8221; below). This promotion reportedly allows the company to exercise greater autonomy and authority over its operations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Trading companies in North Korea typically operate under the aegis of the Ministry of External Economic Affairs. When North Korea promotes trading companies to \u201cguidance bureaus\u201d they can directly pitch their business plans to the country\u2019s Cabinet without having to go through an intermediary government agency.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Pyongjin is headquartered in the Chinese coastal metropolis of Tianjin and holds a symbolic place in trade relations between North Korea and China.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the past, the company was mainly involved in the import of parts for bicycles and motorcycles. These parts have been imported into North Korea from China and used to assemble bicycles and motorcycles for sale in the country.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The company\u2019s recent change in status suggests that it will move beyond its existing activities to import and sell Chinese equipment and even become involved in the purchase of local North Korean factories. North Korean officials have also reportedly granted the company various preferential benefits with regard to customs fees and logistics within North Korea.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The change in the status of the company, however, is mainly related to the North Korean government\u2019s efforts to increase the sale of public bonds, which were floated in <\/span><a href=\"https:\/\/www.dailynk.com\/english\/north-korea-begun-issuing-public-bonds\/\"><span style=\"font-weight: 400;\">mid-April<\/span><\/a><span style=\"font-weight: 400;\">, according to Daily NK\u2019s source in the country. This is evidenced by the fact that the authorities have given the company greater authority over its businesses along with the right to sell off business rights.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe <\/span><i><span style=\"font-weight: 400;\">donju <\/span><\/i><span style=\"font-weight: 400;\">have reacted negatively to the government\u2019s efforts to force them to purchase public bonds in exchange for commercial business permits. State authorities then decided to use the joint venture with China to encourage the <\/span><i><span style=\"font-weight: 400;\">donju <\/span><\/i><span style=\"font-weight: 400;\">to invest in the company or to purchase business rights related to the company using public bonds,\u201d the source said.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe authorities are essentially expecting the <\/span><i><span style=\"font-weight: 400;\">donju <\/span><\/i><span style=\"font-weight: 400;\">to invest in the company because while many <\/span><i><span style=\"font-weight: 400;\">donju <\/span><\/i><span style=\"font-weight: 400;\">don\u2019t trust the state they know that Chinese-backed companies aren&#8217;t likely to fail,\u201d he added.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In short, North Korean authorities are hoping to absorb as much foreign currency from the <\/span><i><span style=\"font-weight: 400;\">donju <\/span><\/i><span style=\"font-weight: 400;\">as possible through investments they make into the joint venture company.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Pyongjin has control over a range of commercial interests in North Korea. The company also reportedly sells North Korean minerals in high demand in China to the Chinese at cheap prices.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cPyongjin has effectively become a link between the <\/span><i><span style=\"font-weight: 400;\">donju <\/span><\/i><span style=\"font-weight: 400;\">and the North Korean government to promote the purchase of public bonds,\u201d the source said.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIn exchange [for helping promote the purchase of bonds], Pyongjin representatives reportedly held a meeting with the North Korean Cabinet to &#8216;readjust&#8217; prices for iron ore, gold, magnesia clinker and other materials,\u201d he added.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Daily NK recently <\/span><a href=\"https:\/\/www.dailynk.com\/english\/north-korea-appears-resuming-mineral-exports-china\/\"><span style=\"font-weight: 400;\">reported<\/span><\/a><span style=\"font-weight: 400;\"> that North Korea had resumed exports of minerals to China, and that these transactions reportedly consisted of such minerals such as iron ore, magnesia clinker and gold.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This development suggests that trading companies operated by the North Korean military along with trading companies like Pyongjin have resumed exports of minerals to China.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cApart from the government\u2019s desire to encourage purchases of public bonds, North Korean officials want to forge closer trade ties and friendship with China [by promoting Pyongjin to become a \u201cguidance bureau],\u201d the source said.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe company\u2019s promotion in status was due to the Chinese government\u2019s efforts to open up paths to business between companies already in North Korea and between Chinese companies and individuals who work with North Korea. The Chinese government also wanted to to help invigorate economic development in the country,\u201d the source further noted.\u00a0<\/span><\/p>\n<p><em>*Translated by Violet Kim<\/em><\/p>\n<p><i>Please direct any comments or questions about this article to dailynkenglish@uni-media.net.<\/i><\/p>\n<p><em><a href=\"https:\/\/www.dailynk.com\/%E5%8C%97-%EB%B6%81%EC%A4%91%ED%95%A9%EC%98%81%EB%AC%B4%EC%97%AD%ED%9A%8C%EC%82%AC-%EB%82%B4%EC%84%B8%EC%9B%8C-%EA%B3%B5%EC%B1%84-%EB%A7%A4%EC%9E%85-%ED%99%9C%EC%84%B1%ED%99%94-%EC%8B%9C%EB%8F%84\/\">Read in Korean<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>North Korea recently upgraded the status of a North Korean-Chinese joint venture company as part of efforts to encourage the sale of public bonds to the country\u2019s wealthy entrepreneurial class, the donju, Daily NK has learned.\u00a0 A source in North Korea told Daily NK on May 13 that the Pyongjin Joint Venture Company (\ud3c9\uc9c4\ud569\uc601\ubb34\uc5ed\ud68c\uc0ac, also [&hellip;]<\/p>\n","protected":false},"author":128,"featured_media":43810,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"wikipediapreview_detectlinks":true,"footnotes":""},"categories":[67,645],"tags":[676,714],"class_list":["post-44806","post","type-post","status-publish","format-standard","has-post-thumbnail","category-news","category-economy","tag-donju","tag-economy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>N. 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