○ North Korean leader Kim Jong-un announced new strategy of constructing socialist economy in spring 2018

○ Foreign investors are being encouraged to explore business opportunities as consumer ability grows

○ Tourist facilities are undergoing sweeping renovations as North Korea seeks to broaden base of economic growth

Foreign visitors and local residents play games at a garden party in Pyongyang in May. Photo: Courtesy of In DPRK, a tourist agency in China

In the spring of 2018, Duan Zhengli, a Chinese businessman who had made investments in Southeast Asian countries, sensed a new business opportunity in North Korea, as the country adopted a new strategy of concentrating all its efforts on constructing a socialist economy.

The initiative was proposed by North Korean leader Kim Jong-un at the Third Plenary Meeting of the Seventh Central Committee of the Workers' Party of Korea (WPK) held in Pyongyang on April 20, 2018. It marked the country's entry into a new development stage in terms of socialist construction, according to a report from the Korean Central News Agency (KCNA).

The new strategy received unanimous support from all sectors of the country, and won praise from the international community. Another report by the KCNA on May 23 said that the international community actively endorsed and supported the new strategic line of making every effort to construct a socialist economy. 

According to the report, the Hungarian Workers' Party said that the strategic line would help the Korean people further construct a socialist economy under the leadership of the WPK.

The front-page of Rodong Sinmun, the WPK's flagship newspaper, published a signed article by WPK Vice Chairman Pak Kwang Ho on April 22. In the article he said that the meeting on April 20 was a political turning point of great significance, in which all causes of the Party and country are mobilizing various resources including labor, material and technology focusing on socialist economy construction, now that the security of the country and the people has been guaranteed.

New opportunities

A year after the implementation of the new strategic line, a wave of changes is taking place in every corner of North Korea.

In light of these reports, Duan decided to try his hand on the other side of the Yalu River after having learned of the changes taking place in North Korea.  

Duan contacted the business department of the North Korean Embassy to China via his friend, assuming it would be inflexible and unhelpful. To his surprise, the embassy was very enthusiastic about his idea of investing in the country.

Duan's application for a market investigation in the country was approved promptly, and he set off on a business trip to North Korea in the first half of 2018 with a couple of friends.

"Not only did we visit urban Pyongyang, but also many rural areas," Duan told the Global Times.

"Shopping malls are the most important indicator, and we observed the customer stream and consumer structures," said Duan.

He noted that "restaurants are the second indicator which shows a household's consuming ability, and we also visited public entertainment venues such as parks and playgrounds to check what people's daily lives are like there."

Duan said that he never thought that he would see such scenes of prosperity in the country. 

"Of all the food markets in the countries that I have visited, North Korea has the cleanest and tidiest ones, with neatly dressed clerks. There are many imported fruits," Duan told the Global Times. 

"It's not difficult to see that the Korean people are living rather good lives, as a lot of citizens go to the market to buy fruits," Duan said.

The Global Times reporter also witnessed a positive change that the new strategic line has brought to North Korea's economic and social development. Nowadays, construction sites can be seen everywhere along the streets of Pyongyang, and new buildings continue to spring up. New merchandise is appearing on store shelves, and people can be seen wearing brighter and more colorful clothes on the street.

The inside of a rural cooperative shop in North Korea Photo: Courtesy of In DPRK, a tourist agency in China

Endeavor to develop

There have been many reports of Kim making inspection tours to factories, construction sites, nursing homes and power plants since the new strategic line was implemented in 2018.

At the same time, a production promotion campaign was also launched in 2018, bringing positive results with economic construction booming in various industries.

In his 2019 New Year speech, Kim spoke highly of the new strategic line, saying that it has consolidated the foundation of the country's self-supporting economy.

Kim also praised the significant development of the country's heavy and light industries, including thermal power energy, manufacturing, coal mining, as well as the efforts and achievements in the country's agriculture and military industry sectors.

Kim also noted the importance of economic independence in his 2019 new year's address, and reiterated its importance at the first session of North Korea's 14th Supreme People's Assembly, which was held on Arpil 11, stating that North Korea's major task is to concentrate on economic construction, cement the material basis of the socialist system, and spare no efforts to enhance economic independence.

According to a series of reports by the KCNA in May, North Korea has made significant achievements in key industries, including road and bridge construction, power plant construction, coal mining and metallurgy.

The WPK and the North Korean government have taken a slew of measures to improve people's livelihood in both urban and rural areas.

After a year of renovation, a department store in Pyongyang reopened in April, becoming the biggest in eastern Pyongyang. Food, garments, furniture, apparatus and cosmetics are all available in the six-storey mall.

The Global Times reporter saw many consumers at the department store.

At the end of May, the 22nd Pyongyang Spring International Trade Fair was held with the participation of more than 450 companies from countries including China, Russia, Pakistan and Poland. 

A Chinese businessman told the Global Times at the trade fair that this year's exhibition was the largest compared with previous years, adding that all the stalls had been reserved, and many had to be set up outside the hall.

All kinds of electronic products, food and items closely related to people's daily life were exhibited at the trade fair.



More open-minded

Following his investigation, Duan decided to invest in household appliances in North Korea. 

"Although the country has a comparatively small demand for high-end office machines, the Korean people's demand for household appliances is increasing," Duan told the Global Times. 

"The North Korean economy and consuming potential is growing day by day, and the people have an increasingly strong desire to improve their daily lives."

"For entrepreneurs, labor costs in North Korea are lower and there are almost zero advertising and marketing costs, which gives us some profit margins," Duan said.

Che Yinghe agrees with Duan, as businessmen who have close connections with North Korea are among the first to sense the changes in the country. 

Che travels frequently to North Korean cities such as Pyongyang and Kaesong as he runs a travel agency in China that specializes in trips to the country.

Kaesong is located in the southern part of North Korea. It is 8 kilometers away from the Demilitarized Zone (DMZ) with South Korea.

Che told the Global Times that since the release of the WKP's new strategic line, the North Korean people's outlook has undergone obvious changes. 

"People there are more and more open-minded," Che said. 

Che believes that the change is rooted in North Korea's expanding communication with the rest of the world, and the country's economic and educational development allows its people to become more confident.

Duan and Che are also surprised at the improving services in North Korea. For example, many state-run travel agencies have proactively launched investigations into what foreign tourists like. Some of them even come to China to attend international exhibitions to promote their travel routes and products. 

The country is developing tourist destinations other than Pyongyang and Kaesong, and is actively renovating tourist facilities.

In the past year, the country has also received an increasing number of Chinese tourists, as it's not easy to get a ticket from Dandong to Pyongyang.

Dandong, in Northeast China's Liaoning Province, is located along the China-North Korea border.

China and North Korea have also engaged in more exchanges in sports and cultural activities at both governmental and civilian levels.

In May, the first Chinese language test center in Pyongyang was unveiled at the Pyongyang University of Science and Technology. 

Zhao Guocheng, deputy chief executive of the Confucius Institute Headquarters, told the Global Times that the establishment of the HSK test spot will work as a new language and cultural bridge connecting the two countries, providing a better study platform for Chinese language learners in North Korea and opening a new gateway for the two peoples, especially the younger generation, to enhance communication and learning.



 
Newspaper headline: Land of opportunity