Naenara Democratic People's Republic of Korea

Investment environment in Rason Economic and Trade Zone

Nature and geography

Natural resources and infrastructures

Legal groundwork and economy

Finance, education and culture

Investment Projects

Projects for Development of Industrial Parks

Projects for Development of Tourist Destinations

Investment Projects for Local Industries

Investment Items

Investment Policy

Tax Policy

Procedures of Enterprise Establishment

Management Committee of Rason Economic and Trade Zone

Investment Projects for Local Industries

1. Rason General Foodstuff Factory

It is planned to turn the factory into a world-class foodstuff base by developing a variety of functional health and green foods and increasing their output so as to satisfy the demands in local markets and find its way into the world markets.

Total area: 10 156 m²

Floor space: 23 552 m²

Management: Equity or contractual joint venture

Estimated cost: US$ 3.6 million (US$ 1.8 million by the other side for equipment and technology)

Profitability: US$ 4.5 million/year

Payback period: 5.54 years

2. Rajin Disabled Soldiers’ Daily-necessities Factory

With the rapid development of the Rason Economic and Trade Zone, the demand for various soaps, detergents and nails is on the steady increase with each passing year.

The production lines of the factory will be renovated so as to render services to promoting the development of the Zone and improving the people’s living by turning out various soaps and nails.

Production items: Laundry soap, toilet soap, powder soap, bath soap, detergents, various nails

Management: Equity or contractual joint venture

Investment items: Equipment for producing various soaps and nails

Total area: 4 200 m²

Floor space: 11 000 m²

Estimated cost: US$ 75 000

Profitability: Sales return US$ 523 000/year, Profit margin US$ 37 000, Payback period 4 years

3. Rajin Beverages Factory

It will produce a variety of health drinks based on excellent traditional beverages of Korea. They will be marketed in the Zone for local inhabitants, foreigners and tourists and find their way abroad.

Production indices: Various kinds of liquors, beers, spring water, vinegar, soda pop, etc.

Management: Equity or contractual joint venture

Investment items: Equipment for producing various fruit and carbonated beverages and yogurt

Total area: 8 500 m²

Floor space: 18 000 m²

Estimated cost: US$ 940 000

Profitability: Sales return US$ 1.2 million/year, Profit margin US$ 192 000, Payback period 9.7 years, Period of equity joint venture 15 years

4. Sonbong Greenhouse Farm

Along with the rapidly-developing economy, the people demand various kinds of fresh vegetables in and out of season.

The vegetables will be on sale at markets, commercial networks, restaurants and hotels in the Zone to the inhabitants, foreigners and tourists, and some of them will be exported to the Far Eastern region of Russia.

Production indices: Cabbage, turnip, onion, spinach, tomato, cucumber, pumpkin, etc.

Type of management: Equity or contractual joint venture

Investment items: Construction of 18 buildings for a solar heat-storage-wall greenhouse (550 m²), and other facilities

Total area: 1 100 m²

Floor space: 14 000 m²

Estimated cost: US$ 582 000

Profitability: Sales return US$ 153 000/year, Profits margin US$ 82 000, Payback period 10 years, Period of equity joint venture 20 years

5. Sonbong Garment Factory

As the demand for a wide selection of garment products is growing, their kinds and varieties are on the increase. Specialized study, designing and production are drawing special attention. With investment in the production of garment products going up specialized garment producers equipped with up-to-date and information-based processing facilities are appearing in great number.

Total area: 10 000m²

Floor space: 7 000m²

Management: Processing trade

Production items: Wadded clothes, casual wear, climbing outfit, knitwear, etc

6. Rason Ryongson General Processing Factory

In case detergents are produced and marketed in the Zone, the cost for manpower, land, electricity and water will be lowered, and retail price will be correspondingly lower than import price.

The demand for laundry soap, toilet soap, toothpaste, cleaning liquid for kitchen use and other detergents exceeds 40 000 tons every year.

When the per-capita norm of consumption is considered to be 2 kg, the scope of market for detergents is expected to rise to tens of thousands of tons a year.

Estimated cost: US$ 6 millions

Profitability: Sales return US$ 4 million/year, Profit margin US$ 0.82 million/year

7. Renovation and Expansion of Namsan Hotel

This project aims at face-lifting the service facilities and the interior and exterior surface of the Namsan Hotel with a long history in a modern fashion so that it can take part in the architectural arrangement of the central part of the city and tourists and local residents can enjoy a varied and civilized emotional life by adding multi-purpose service and amusement facilities.

The renovation project is to be conducted in two stages: The first stage is to add two stories by reinforcing the existing building, and the second stage is to linking the building with a 15-storey building.

The inner garden of the hotel will be roofed with glass to use natural lighting. In the garden a pond and a cascade decorated with flowering trees and cobbles are expected to be built so as to create a good environment and satisfy people’s demand for emotional life.

1st stage:

Floor space of the existing building: 2 985m²

Extension space: 3 385m²

Inner garden space: 890m², height: 5.1m

Estimated cost: US$ 3.3 million

2nd stage:

Total floor space: 15 500m²

Project to be invested: Namsan Hotel

8. Renovation of Plaza of Namsan Hotel

The plaza of the Namasan Hotel is to be renovated as an international pedestrian plaza of modern style as befits an international cultural plaza.

The plaza will consist of a supermarket, pedestrian area, parking lot, small fountain, ornamental structure, chandelier, teahouse, large circular stairs and others as befits an international pedestrian plaza.

Scale: 15 000 m² for pedestrian area

11 430 m² for supermarket

3 575 m² for others