NKorea plans to set up eight special economic zones
TOKYO. March 2. KAZINFORM. The North Korean leadership plans to set up in Pyongyang and seven other regions of the country special economic zones to attract foreign investments, for which tax preferences are planned among other measures; Kazinform refers to Itar-Tass.
A state development bank will begin operating in mid-March to improve transport and other infrastructure, the leading Japanese economic newspaper Nikkei reported on Tuesday referring to representatives from the North Korean Daepung International Investment Group.
It is expected that a successful Chinese experience will be used in setting up special zones and carrying out necessary for that reforms. Focus will be made on the development of concrete industrial branches in each of the zones. In Pyongyang, for example, focus will be made on new technologies, while in Rason - on petrochemistry.
However, at the first stage special attention will be paid to the development of agriculture and transport, the construction of 100,000 apartments in Pyongyang. North Korea pins hopes on aid from the U.N. International Fund for Agricultural Development in boosting its agricultural sector.
North Korea expects to first of all attract Chinese capital to new projects. It is reported that entrepreneurs from France, Egypt and Vietnam also work in North Korea. However, the possibility of a more active participation of western and Japanese business raises doubts because of sanctions imposed by the U.N. Security Council on North Korea in connection with its nuclear plans; Kazinform cites Itar-Tass.