Rason Special Economic Zone
|Rason Special Economic Zone|
|Revised Romanization||Rajin-Seonbong Gyeongje Teukgu|
|McCune–Reischauer||Rajin-Sŏnbong Kyŏngche T'ŭkku|
The Rason Special Economic Zone, earlier called the Rajin-Sonbong Economic Special Zone, was established in the early 1990s by the North Korean government (DPRK) near Rason to promote economic growth through foreign investment. It is similar to the Special Economic Zones set up by the People's Republic of China and elsewhere to pilot market economics in a designated controlled area. It is near the border with both China and Russia and is a warm-water port for both countries.
Chinese and Russian companies have invested in the economic zone, and the use of foreign currency is permitted. Bloomberg reported that ground was broken in June 2011 on a further development stage of the zone. In November 2011, work began on building electricity transmission lines that will provide Chinese electricity supplies in the zone.
The Rajin-Sonbong Economic Special Zone is administered by the Committee of External Economic Cooperation (CPEEC). Foreign companies must be invited by the Committee of External Economic Cooperation (CPEEC) in order to participate in the special zone.
The first joint North-South company called Chilbosanmeri Joint Company has been formally established in Rajin-Sonbong Economic Special Zone.
Sources conflict over the date the zone was founded, either 1991 or 1993. Since its creation, laws governing the zone's status have been amended six times, the most recent revision being approved by the Presidium of the Supreme People’s Assembly on 3 December 2011.
The 746 km2 Rajin-Sonbong economic special zone is situated on the western side of the Tumen River in North Korea. It is physically located between 42 08'-42 38'N and 130 07'-130 42'E. This location is in the east-most end of the country, close to both Russia and China.
According to North Korean Economy Watch the area is surrounded by a 56 kilometres (35 mi) long electrified fence.
In August 2012, an international trade fair was held, offering foreign investors and journalists a look at the work-in-progress. The zone is slated to be a manufacturing, tourism and transportation hub. However, some analysts think the special zone is more of a project for North Korea to experiment with the capitalist economy rather than use it as basis of transforming the whole North Korean's economy.
- Pipa Tourist Hotel
- Ra-Son Economic Co-operation Company
- Foreign Economic Co-operation Corporation
- Korea Joint Venture Group
- Samgwang Trading Company
- Korea Machinery Trading Company
- Korea Daesong B Trading Corporation
- Opalsam Trading Company
- Korea Rungra 888 Trading Corporation
- Korea Ponghwa General Corporation
- Pyongyang Aluminium Products Factory
- Korea Osoksan Trading Company
- Light Industry Products Trading Company
- Korea Samtaesong General Group
- Korea Pyongchon Trading Corporation
- Golden Triangle Bank
- Yanbian Tianyu International Trade Company
Chinese investors are renovating a road from Rason to China, and Russian railway workers are renovating the railway from Rason (which is on the Pyongra Line) to Russia, from where it continues onto the Trans-Siberian Railway.
There are three ports in the area: the Rajin Port - handling capacity of 3 million tons, the Sonbong Port - handling capacity of 2-3 million tons, and the Chongjin Port - handling capacity of 8 million tons.
Chinese companies operate two piers at the port, for coal export and for containers. A Russian company operates a third pier.
- Khanna, Parag (September 17, 2012). "Typhoon tourism: One week in North Korea". CNN. Retrieved 8 April 2013.
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- Andray Abrahamian (24 February 2012). A Convergence of Interests: Prospects for Rason Special Economic Zone (Report). Korea Economics Institute. http://www.keia.org/sites/default/files/publications/rason_sez_paper.pdf. Retrieved 5 May 2012.
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- By Scott Snyder, April 25th, 2010, Rajin-Sonbong: A Strategic Choice for China in Its Relations with Pyongyang
- "Local Companies". North Korean Government. Retrieved 5 November 2012.
- "Introduction: Tokyo-Rason Tour". North Korean Government. 17 December 1979. Retrieved 5 November 2012.
- WONG, EDWARD; Jonathan Ansfield and Jonathan Ansfield (October 12, 2011). "Tending a Small Patch of Capitalism in North Korea". The New York times. Retrieved 8 December 2012.
- Andray Abrahamian (September 2011). "Report on Rason Special Economic Zone, Democratic People’s Republic of Korea". Chosun Exchange. CE2011001. Retrieved 5 May 2012.
- Report on Rason Special Economic Zone, Democratic People’s Republic of Korea, Andray Abrahamian, September 2011, Chosun Exchange
- Rajin-Sonbong Economic & Trade Zone: Investment & Business Guide, United Nations Industrial Development Organization, 1998
- Information on Entry & Investment into Rajin-Sonbong District, 1997