What Companies Do Business With North Korea
North Korea is notorious for its advanced weaponry and human rights
violations. This is largely due to the country’s reclusive nature, its
reliance on a state-led command economy and its isolation from
international trade. But despite its reputation, North Korea continues
to conduct business with other countries and international companies.
From mining and food exports to textile production, there are a
number of industries that benefit from commerce with the country.
In the past, various European companies have faced criticism for
trading with North Korea. One such example is the Italian trading
group InterTalent, which was accused of skirting sanctions to
supply North Korea with luxury cars. Other companies have done
business with the country for much less nefarious reasons. For
example, the U.S.-based non-profit Empowerment International
supports job training programs and agricultural initiatives in North
Korea.
In the last few years, North Korea’s economy has grown. The country
has opened itself up to foreign investments and has even made
attempts to attract foreign tourism. North Korea has been producing
more consumer products, such as food and textiles, to sell
internationally. According to the United Nations, North Korea’s
exports to China rose 27% in 2018, while exports to other countries
rose 10%.
Despite the increased participation in international trade, North
Korea is still largely dependent on foreign aid to support its
economy. This is due to the country’s limited resources and lack of
advanced technology and economic infrastructure. As a result, North
Korea is heavily reliant on food imports and foreign remittances to
sustain its people.
Many governments and international companies have decided to
engage with North Korea despite the country’s controversial
policies and actions. Businesses have been attracted by North
Korea’s increasing openness to international trade and investment.
In addition, companies have sought to engage with the country’s
emerging economy and to gain access to its lucrative mineral
resources.
The UN Security Council and the US government have imposed
sanctions on North Korea in an effort to discourage international
trade with the country in response to its nuclear program. In
2018, the US imposed additional sanctions on companies involved
in the country’s nuclear and ballistic missile programs. However,
the sanctions have not been very effective in curbing business
with the country.
Despite the sanctions, companies still find ways to do business
with North Korea. Despite the risks, businesses are willing to take
advantage of the country’s low wages and easily exploitable
resources. Businesses that are willing to take the risk are often
rewarded with lucrative deals and low labor costs.
Mining Industry
Mining is one of the main industries in North Korea and one of the
primary sources of revenue for the country. North Korea is estimated
to have large reserves of uranium, coal, and rare earth elements,
which are used in a variety of industries. North Korea has been
mining minerals to sell to trading partners such as China, South
Korea, and Russia, and has also been farming for a variety of
resources such as gold and silver.
Despite the sanctions, North Korea has been able to maintain a
stable mining industry, with reports of the country owning and
operating over 300 mines. These mines provide the country with
significantly more income than any other industry. Reports suggest
that in recent years, the country’s revenue from the mining industry
amounts to over $200 million annually.
In recent times, the country has used this revenue to build its
military capabilities. North Korea has been able to purchase
advanced military technology with the money it makes from its
mines. This equipment has been used to develop the country’s
nuclear weapons program.
The North Korean government has also used the resources from its
mines to improve the country’s infrastructure. Reports suggest that
the country has used the funds to build new roads, railways, and
other infrastructure projects. These projects have been used to
improve the living conditions of the North Korean people.
Textile Industry
North Korea is one of the few countries in the world with a
significant textile industry. Companies from around the world
import North Korean textiles for military, sports, and leisure
purposes. The country is particularly known for its high-quality
silks and furs. North Korea is estimated to export almost 10 million
metric tons of textiles annually, making it one of the
country’s biggest exports.
The North Korean textile industry employs over 25,000 workers
and is estimated to generate around $1.1 billion in revenue each
year. North Korea maintains a high standard for its textiles, and
the quality of its products has made them popular in Western
markets. The country is also well-known for its low labor costs,
which has enabled it to remain competitive in the global textile
market.
Despite the sanctions, many Western companies continue to do
business with North Korea. It is estimated that the country exports
over $200 million worth of textiles to the United States annually.
In addition, several Japanese companies have been working with
North Korea to produce high-quality garments.
The North Korean textile industry is often seen as a symbol of
economic progress and many North Koreans take pride in their
products. As the country continues to open up to foreign investments
and international trade, the textile industry is expected to grow
substantially in the upcoming years.
Food Exports
North Korea is one of the few countries that has the ability to
export food. The country exports a variety of food products,
including seafood, grains, and fruits. North Korea’s seafood
industry is particularly successful, with the country exporting
over $550 million in seafood products annually.
North Korea has consistently been a leader in food exports
despite its limited resources and sanctions. The country has
been able to utilize its ample seaside countryside to cultivate
crops and fish to export. North Korean seafood has been
exported to China, South Korea, and Russia for decades.
North Korea has also been able to export food to other
countries due to its low labor costs. North Korea has access
to cheap labor, which allows it to produce food at a much lower
cost than countries with higher wages. This has enabled North
Korea to remain competitive in the global food market.
Along with seafood and grains, North Korea is also known for its
agricultural exports. The country exports a variety of fruits and
vegetables, including pears, oranges, and apples. North Korea
has maintained an active agricultural sector despite the sanctions,
with reports suggesting that the country exports more than $100
million in fruits and vegetables each year.
Tourism Industry
North Korea is one of the few countries that has developed a
modest tourism industry. The country has become slightly more
open to foreign travelers, with the government allowing a limited
number of visitors each year. North Korea’s main attractions are its
historic sites, monasteries, mountains, and its reclusive culture.
The North Korean government has actively encouraged tourism,
offering special visas for visitors from certain countries. The
government has also built several hotels and resorts to cater to
foreign travelers. Despite the limited access to foreign visitors,
North Korea is estimated to have earned over $150 million from
the tourism industry each year.
The tourism industry has also helped bring in foreign currency for
the country. Visitors to the country are required to pay a fee for
entry and are typically not allowed to bring in their own currency.
North Korea has been able to utilize its tourist industry to bring
in significant amounts of foreign currency.
Despite the potential benefits of the tourism industry, many
countries have warned citizens against traveling to North Korea
due to the country’s poor human rights record. Foreign visitors
are also subject to intense surveillance and restrictions, making it
difficult to engage in actual tourism.
Remittance Services
North Korea has been increasingly relying on foreign remittance
services to sustain its economy. The country’s citizens rely heavily
on foreign currency to support their day to day lives. North Korea
has provided its citizens with limited access to the global financial
system, making it difficult for them to receive money from
overseas.
In recent years, the North Korean government has opened up to
foreign remittance services. Foreign companies such as Western
Union, MoneyGram, and Euronet have begun offering their services
in the country. These services have enabled North Koreans to
receive money from overseas much more quickly and reliably.
The remittance services have been an invaluable source of
revenue for the country. In 2018, North Koreans received over $2
billion in remittances from overseas. This money has been
instrumental in supporting the country’s economy and allowing its
citizens to maintain their standard of living.
In addition to providing its citizens with access to money, North
Korea has also been able to take advantage of the money
entering the country. The money has been used to prop up the
country’s economy and finance its military operations. The
government has also used the money to finance its controversial
nuclear weapons program.
Conclusion
Despite its reclusive nature, North Korea continues to do business
with other countries and international companies. From mining and
food exports to textile production, there are a number of industries
that benefit from commerce with the country. The country has
also made efforts to open up and attract foreign investments and
tourism.
The UN Security Council and the US government have imposed
sanctions on North Korea in an effort to discourage international
trade with the country. Despite the sanctions, companies still find
ways to do business with North Korea. The country has been able to
utilize its ample resources and low labor costs to remain
competitive in the global market.
The North Korean economy is still largely dependent on foreign
aid to support its economy. This is due to the country’s limited
resources and lack of advanced technology and economic
infrastructure. North Korea has been able to maintain a stable
economy through foreign remittances, mining, and the tourism and
